Universal Entertainment Corp. (UE) has revised its 2025 earnings forecast downward, signaling a difficult 12 months forward for the corporate. The gaming and leisure big, which operates casinos and gaming machines in each Japan and the Philippines, has seen its EBITDA expectations for 2025 fall considerably. According to analysts from S&P Global Ratings, UE’s company-wide EBITDA is predicted to drop to ¥18 billion (US$115 million) in 2025, down from ¥21.2 billion in 2024. Despite efforts to stabilize its core operations, the corporate faces continued headwinds, with a restoration forecasted to stay sluggish till 2026.
Casino Resort Business Struggles within the Philippines
The most important contributor to the corporate’s downturn is its on line casino resort operations within the Philippines, particularly Tiger Resort, Leisure and Entertainment Inc., UE’s subsidiary. The on line casino resort has confronted a gentle decline in gross gaming income (GGR), with double-digit declines year-on-year for a number of consecutive intervals. This decline has been pushed by lowered VIP buyer exercise, fewer worldwide guests—notably from China—and growing competitors throughout the native on line casino market.
S&P Global expects the on line casino resort’s EBITDA to fall to ¥12 billion in 2025, a considerable drop from the ¥19 billion recorded in 2024, which already marked a decline in efficiency. Despite these challenges, analysts stay cautiously optimistic about future restoration efforts. “The company will continue efforts to restore and stabilize performance, aiming to attract more customers, though profitability will likely remain pressured by higher marketing expenses,” said the report.
UE’s gaming machines division, working in Japan, has additionally confronted difficulties within the wake of its 2024 failure to go compliance assessments for brand spanking new fashions. Sales throughout the division have been unpredictable, and whereas there may be some expectation that the division could stabilize within the coming years, the forecast for 2025 stays modest. S&P Global anticipates EBITDA of roughly ¥12 billion in 2025, which is a considerable drop from the ¥25 billion generated in 2023.
Despite these challenges, the corporate’s gaming machines enterprise is projected to see some restoration after 2025, with EBITDA more likely to stabilize round ¥15 billion in 2026. However, even this stabilization would nonetheless symbolize solely round 60% of the extent seen in 2023.
Debt and Liquidity Concerns Remain
One of the foremost monetary issues for UE is its excessive debt load. The firm’s debt-to-EBITDA ratio is predicted to deteriorate to round 10x by the tip of 2025, up from 8.9x on the finish of 2024. This rise within the ratio alerts a heavier burden for the corporate when it comes to debt compensation and monetary sustainability. S&P Global forecasts that this ratio will stay elevated for no less than one other 12 months, even with a projected restoration in EBITDA from 2026 onward.
Despite these issues, the corporate’s liquidity is taken into account manageable within the brief time period. UE’s money and deposits grew to ¥27.4 billion by the tip of September 2025, up from ¥21.2 billion on the finish of March 2025, largely as a result of asset gross sales and compensation funds. With comparatively low debt maturities anticipated over the following 12 months—between ¥1 billion and ¥2 billion—the corporate ought to be capable of preserve liquidity with out dealing with instant monetary misery.
While the corporate’s monetary scenario stays below stress, S&P Global maintains a steady outlook for UE, acknowledging that the corporate has applied measures to stabilize its key companies. However, the company has warned that additional deterioration in EBITDA or a drop in money reserves under ¥25 billion might result in a downgrade. Given the gradual restoration trajectory of each UE’s gaming machine and on line casino resort companies, the probability of an improve is low within the close to time period.
