Universal Entertainment successfully opened the Okada Manila property in the Philippines in December 2016. Despite the temporary closure due to the Covid-19 pandemic, the resort has experienced steady growth. To enhance its earnings power, Universal implemented various measures such as reducing fixed expenses and increasing marketing efforts. These measures will continue to be in effect even after the restrictions, such as the 30% capacity limit, are eased, resulting in improved future margins.
As a result of these positive developments, Universal is now considering a potential listing on either the Nasdaq or New York Stock Exchange. This strategic move aims to further expand its IR business and increase the overall value of the corporate group. In preparation for a potential listing, Universal has formed agreements with financial advisory firms from the United States and Japan.
In order to proceed with the listing, Universal is currently in the process of identifying a Special Purpose Acquisition Company (SPAC). Moreover, the company is evaluating the legal and tax implications as well as any necessary changes to its capital structure that a listing may require. Although no specific timeline has been provided, Universal expects the listing to occur sometime in 2021.
Joining the league of gaming companies that have gone public through SPAC transactions, Universal would follow in the footsteps of industry leaders like DraftKings, Golden Nugget Online Gaming, and Rush Street Interactive. Additionally, Fertitta Entertainment, the parent company of the renowned Golden Nugget brick-and-mortar operator Landry’s, is also planning to list via a combination with Fast Acquisition Corporation.
While Universal announced positive financial results for 2020, the closure of Okada Manila resulted in a 27.3% decline in year-on-year revenue. However, the sales of its pachinko machines saw an increase in revenue.
