This is an English translation of the official announcement in Japanese that was released on February 12, 2026. The translation is prepared for the readers’ convenience only. All readers are strongly recommended to refer to the original Japanese version for complete and accurate information. Should there be any inconsistency between the translation and the official Japanese text, the latter shall prevail.
Company Name: Universal Entertainment Corporation Code No.: 6425 URL: https://www.universal-777.com
February 12, 2026
Listed Exchange: Tokyo Stock Exchange
Representative: (Name) Tomohiro Okada (Title) Representative Director and President Contact: (Name) Nobuki Sato (Title) Senior Executive Officer & CFO
TEL: +81-3-5530-3055
Scheduled Date of Ordinary Shareholders’ Meeting: March 27, 2026 Scheduled Submission Date of Securities Registration Report: March 30, 2026 Scheduled Commencement Date of Dividend Payment: -
Supplementary Briefing Materials for Settlement of Accounts: Yes Briefing on Settlement of Accounts: Yes (for institutional investors)
(Amounts rounded down to nearest million yen)
Consolidated Business Results for Fiscal Year 2025 (Period from January 1, 2025 to December 31, 2025)
Consolidated Operating Results
(Percentages refer to changes from the previous fiscal year)
Net Sales
Operating Profit
Ordinary Profit
Net Income Attributable to Owners of Parent
Million Yen
%
Million Yen
%
Million Yen
%
Million Yen
%
Fiscal Year 2025
122,827
(2.8)
(3,228)
-
(18,497)
-
(231,425)
-
Fiscal Year 2024
126,328
(29.4)
3,024
(90.1)
(5,599)
-
(15,569)
-
(Note) Comprehensive income
Fiscal Year 2025: (240,043) million yen (-%) Fiscal Year 2024: (12,516) million yen (-%)
Net Income per Share
Diluted Net Income per Share
Ratio of Net Income to Shareholders’
Equity
Ratio of Ordinary Profit to Total Assets
Ratio of Operating Profit to Net Sales
Yen
Yen
%
%
%
Fiscal Year 2025
(2986.48)
-
(92.7)
(3.7)
(2.6)
Fiscal Year 2024
(200.92)
-
(4.1)
(0.9)
2.4
(Reference) Equity in earnings/losses of affiliates
Fiscal Year 2025: 2,027 million yen
Fiscal Year 2024: 9 million yen
(Note) Diluted net income per share is not presented because a net loss per share was posted despite the existence of latent shares with a dilution effect.
Consolidated Financial Status
Total Assets
Net Assets
Ratio of Shareholders’ Equity
Net Assets per Share
Million Yen
Million Yen
%
Yen
As of December 31, 2025
373,634
129,687
34.7
1,673.58
As of December 31, 2024
632,795
369,731
58.4
4,771.28
(Reference) Shareholders’ equity
As of December 31, 2025: 129,687 million yen As of December 31, 2024: 369,731 million yen
Consolidated Cash Flow Position
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Balance of Cash and Cash Equivalents at the End of Period
Million Yen
Million Yen
Million Yen
Million Yen
Fiscal Year 2025
11,053
(3,923)
9,250
36,279
Fiscal Year 2024
1,518
(13,371)
(9,798)
23,795
Status of Dividends
Annual Dividends
Total Dividends (Annual)
Dividend Payout Ratio (Consolidated)
Ratio of Dividend to
Net Assets (Consolidated)
End of 1st Quarter
End of 2nd Quarter
End of 3rd Quarter
End of Fiscal Year
Total
Yen
Yen
Yen
Yen
Yen
Million Yen
%
%
Fiscal Year 2024
-
30.00
-
0.00
30.00
2,324
-
0.6
Fiscal Year 2025
-
0.00
-
0.00
0.00
-
-
-
Fiscal Year 2026 (Forecast)
-
0.00
-
0.00
0.00
-
Consolidated Business Results Forecast for Fiscal Year 2026 (Period from January 1, 2026 to December 31, 2026)
(Percentages refer to changes from the previous fiscal year)
Net Sales | Operating Profit | Ordinary Profit | Net Income Attributable to Owners of Parent | Net Income per Share | |||||
Full Fiscal Year | Million Yen | % | Million Yen | % | Million Yen | % | Million Yen | % | Yen |
140,000 | 13.9 | 16,000 | - | 2,200 | - | 2,000 | - | 25.80 | |
* Matters of Note
(1) Significant changes in the scope of consolidation during the period | : None | |
(2) Changes in accounting policies, changes in accounting estimates and/or restatements | ||
1) Changes in accounting policies accompanying revision of accounting standards, etc. | : None | |
2) Changes in accounting policies other than 1) | : None | |
3) Changes in accounting estimates | : None | |
4) Restatements | : None | |
(3) Number of outstanding shares (common stock) | ||
1) Shares issued at end of fiscal period (including treasury shares) | ||
As of December 31, 2025: As of December 31, 2024: | 80,195,000 shares 80,195,000 shares | |
2) Number of treasury shares at end of fiscal period | ||
As of December 31, 2025: As of December 31, 2024: | 2,704,139 shares 2,704,096 shares | |
3) Average number of shares during fiscal period | ||
Fiscal Year 2025: Fiscal Year 2024: | 77,490,864 shares 77,490,904 shares | |
(Reference) Summary of the Non-consolidated Business Results
Non-consolidated Business Results for Fiscal Year 2025 (Period from January 1, 2025 to December 31, 2025)
Non-consolidated Operating Results
(Percentages refer to changes from the previous fiscal year)
Net Sales
Operating Profit
Ordinary Profit
Net Income
Million Yen
%
Million Yen
%
Million Yen
%
Million Yen
%
Fiscal Year 2025
58,819
28.6
3,680
275.9
(6,735)
-
(163,842)
-
Fiscal Year 2024
45,730
(44.9)
979
(93.5)
(3,573)
-
(11,868)
-
Net Income per Share
Diluted Net Income per Share
Yen
Yen
Fiscal Year 2025
(2,114.34)
-
Fiscal Year 2024
(153.16)
-
(Note) Diluted net income per share is not presented because a net loss per share was posted despite the existence of latent shares with a dilution effect.
Non-consolidated Financial Status
Total Assets
Net Assets
Ratio of Shareholders’ Equity
Net Assets per Share
Million Yen
Million Yen
%
Yen
As of December 31, 2025
287,651
188,499
65.5
2,432.54
As of December 31, 2024
474,936
352,335
74.2
4,546.79
(Reference) Shareholders’ equity
As of December 31, 2025: 188,499 million yen
As of December 31, 2024: 352,335 million yen
Reason for differences between non-consolidated financial results for Fiscal Year 2024 and Fiscal Year 2025
During the current fiscal year, the Amusement Equipments Business saw an improvement in type approval test compliance, enabling the timely introduction of new models. As a result, unit sales increased from 92,150 units in the previous fiscal year to 115,000 units, significantly surpassing the previous fiscal year in both net sales and operating profit. However, the net loss for the current fiscal year deteriorated significantly compared to the previous fiscal year due to the recording of a loss on valuation of shares of subsidiaries and associates of 144,195 million yen, an provision for allowance for doubtful accounts at subsidiaries and associates of 21,147 million yen, and an impairment loss of 4,338 million yen.
The current financial report is not subject to audit by certified public accountants or auditing firms.
Explanation on Proper Usage of Business Results Forecast and Other Noteworthy Items
The forward-looking statements regarding business results, etc. as featured herein are based on information that is currently available and certain assumptions that are determined to be reasonable, but are not promises by Universal Entertainment Corporation (hereinafter referred to as "UEC") regarding future performance. Actual business results may vary significantly due to a number of factors. For preconditions for business forecasts, notes on the usage of business forecasts and so forth, please see “1. Overview of Results of Operations, etc., (1) Overview of Operating Results for Fiscal Year 2025” on page 2 of the Attached Materials.
Attached Materials: Table of Contents
Overview of Results of Operations, etc. 2
Overview of Operating Results for Fiscal Year 2025 2
Overview of Financial Status for Fiscal Year 2025 4
Overview of Cash Flows for Fiscal Year 2025 5
Basic Policy Regarding Distribution of Profits and Dividends for the Current and Next Fiscal Years 6
Basic Approach to the Selection of Accounting Standards 6
Consolidated Financial Statements and Notes 7
Consolidated Balance Sheet 7
Consolidated Statement of Income and Consolidated Statement of Comprehensive Income 9
Consolidated Statement of Income 9
Consolidated Statement of Comprehensive Income 10
Consolidated Statement of Changes in Equity 11
Consolidated Statement of Cash Flows 13
Notes to Consolidated Financial Statements 15
(Notes Pertaining to Going Concern) 15
(Changes in Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements) 15 (Changes in Accounting Policies) 15
(Notes to Consolidated Statement of Cash Flows) 15
(Additional Information) 15
(Segment Information) 16
(Per Share Information) 19
(Material Subsequent Events) 19
Overview of Results of Operations, etc.
Overview of Operating Results for Fiscal Year 2025
During Fiscal Year 2025, the Japanese economy showed signs of a gradual recovery with improvements in both the employment and income environment and demand created by foreign tourists. However, the global economic outlook remains uncertain, reflecting concerns over increased U.S. tariffs, prolonged conflicts in Eastern Europe and the Middle East, and the slowdown in the Chinese economy.
Against this backdrop, volatility in exchange rates as well as resource and raw material prices impacted corporate earnings. In an environment of heightened uncertainty, the UEC Group (hereinafter referred to as the “Group”) must pursue flexible and prudent management decisions. Furthermore, the Group recognizes the importance of addressing environmental and social issues and strengthening corporate governance as part of its efforts to achieve sustainable growth in corporate value, and continues to implement various initiatives in these areas. The Group also implements risk management measures by anticipating the potential impact of natural disasters and unforeseen events on its operations.
In the Amusement Equipments Business, the Pachislot market remained solid, reflecting steady progress in expanding the market share of smart Pachislot and the introduction of new machines featuring Bonus Trigger (BT) functions aimed at diversifying gameplay. In the Pachinko machine segment, the rollout of smart Pachinko featuring Lucky Trigger (LT)
3.0 Plus continues to expand. During Fiscal Year 2025, the Group introduced 8 Pachislot titles and 8 pachinko titles, resulting in total sales volume of 115,000 units.
In the Integrated Resort (IR) Business, the Philippine gaming market as a whole faced structural headwind due to a contraction in the VIP market, and the Group was significantly impacted. Additionally, temporary factors such as a decrease in visitor numbers due to inclement weather and political instability compounded the situation, resulting in gaming revenue falling below the previous year's level.
As a results, sales in Fiscal Year 2025 totaled 122,827 million yen, decreased by 2.8% year on year. Operating loss was 3,228 million yen (compared with operating profit of 3,024 million yen in Fiscal Year 2024) partly due to the increase in selling, general, and administrative expenses including the depreciation at OKADA MANILA. Foreign exchange losses were recognized due to depreciation of the Japanese yen against the U.S. dollar as in 2025. As a result, ordinary loss was 18,497 million yen (compared with ordinary loss of 5,599 million yen in Fiscal Year 2024). Net loss attributable to owners of parent was 231,425 million yen (compared with net loss attributable to owners of parent of 15,569 million yen in Fiscal Year 2024) mainly due to impairment losses incurred at OKADA MANILA. Business segment performance is as follows. The figures are prior to adjustment for inter-segment sales or transfers.
Amusement Equipments Business
In Fiscal Year 2025, the Amusement Equipments Business posted net sales of 56,708 million yen (increased by 30.4% year on year) and an operating profit of 10,662 million yen (increased by 45.8% year on year).
In the amusement equipments industry, adoption of smart Pachislot machines continued to progress steadily, coming to account for the majority of new machine sales. This high popularity has driven growth across the Pachislot market, and market conditions remain favorable. In the Pachinko machine segment, the rollout of smart Pachinko machines equipped with Lucky Trigger (LT) 3.0 Plus contributed to the accelerated adoption of smart Pachinko machines.
Under these circumstances, UEC released titles such as the latest Madoka Magica series installment, “SMART PACHISLOT Magia Record: Puella Magi Madoka Magica Side Story”, A PROJECT's first smart Pachislot title, “AREX BRIGHT”, and “SMART PACHISLOT OKIDOKI! DUO ENCORE”, the highest-specifications in the OKIDOKI! series. In the Pachinko sector, sales included “P HANEMONO Family Stadium”, a motif of the popular baseball game from Bandai Namco Entertainment Inc., as well as the Group 's first smart Pachinko machines equipped with LT 3.0 Plus: “e SHAMAN KING” and “e SHAMAN KING Dekkeena Ver.”
Integrated Resort Business
The Integrated Resort Business posted net sales(1) of 65,409 million yen (decrease by 20.2% year on year) and an operating loss of 7,114 million yen (operating profit was 2,871 million yen in Fiscal Year 2024) in Fiscal Year 2025. Adjusted segment EBITDA(2) was 10,282 million yen (decrease by 47.4% year on year).
The gaming market in Manila’s Entertainment City is facing ongoing correction. Amidst a contraction in the overall market, OKADA MANILA's performance fell below the previous year's level due to factors including the temporary impact of visitor numbers affected by inclement weather and political instability.
Despite facing challenges in the gaming revenue sector, OKADA MANILA demonstrated notable resilience and growth across key business metrics including significant improvements in membership and participation. New sign-ups for REWARD CIRCLE loyalty program surged to 102,000, reflecting a strong increase from 79,000 in the previous year—a growth rate of approximately 29%. Furthermore, the number of unique active members per month showed a modest increase of 0.8%, indicating stable engagement among our customer base.
Our marketing initiatives, particularly through the REWARD CIRCLE loyalty program, focused on fostering customer engagement and loyalty. Key events included a successful four-leg VIP Tournament Series, exclusive concerts during significant cultural festivities, and the transformation of our annual “Christmas Village” into a vibrant “Christmas Carnival”, which engaged an average of 7,400 participants per day.
Moreover, new attractions were introduced, culminating in the launch of a Fountain program featuring “Dynamite” by BTS, further enhancing guest experiences and drawing new visitors to the resort.
In summary, while we navigated challenges, our focus on customer engagement, innovative marketing strategies, and market adaptability has positioned OKADA MANILA for continued growth and success in an evolving landscape. We remain committed to strengthening our brand and ensuring an exceptional experience for our valued guests.
Net sales are gross revenues minus gaming taxes and jackpots.
Adjusted segment EBITDA = Operating profit/loss + Depreciation + Other adjustments
Other
Other Business posted net sales of 534 million yen (increased by 12.1% year on year), and an operating profit of 615 million yen (increased by 76.2% year on year) in Fiscal Year 2025.
In the Media Content Business, we have launched simulator applications for “OKIDOKI! GORGEOUS” and “AREX BRIGHT” on App Store and Google Play. Sales of “AREX BRIGHT” have been strong as it ranks in the top 10 in the paid game category. For “Universal Kingdom”, the subscription-based application, and “Slots Street”, the free-to-play social casino game, we are constantly holding in-game events to acquire new users and enhance user satisfaction.
For digital music distribution, eight titles, including the “SMART PACHISLOT OKIDOKI! DUO ENCORE Original Soundtrack”, were released on 24 platforms, including major sites such as Apple Music, Spotify and YouTube Music.
(Future Outlook)
Amusement Equipments Business
In the amusement equipments industry, smart Pachislot machines are steadily gaining market share, backed by its solid utilization. Furthermore, the wider adoption of machines featuring Bonus Trigger (BT) functions aimed at diversifying gameplay has led to the emergence of successful models, contributing to continued growth of the Pachislot market. Although the utilization of Pachinko machines remains somewhat sluggish overall, manufacturers continue to introduce smart Pachinko machines equipped with Lucky Trigger (LT) 3.0 Plus. The continued introduction of LT 3.0 Plus-featured models with enhanced game elements is expected to drive higher smart Pachinko utilization and support market revitalization.
In Fiscal Year 2026, the Group released its first smart Pachislot in the Hanabi series, “SMART PACHISLOT HANABI”, and began sales of “SMART PACHISLOT MILLION GOD: KAMIGAMI NO KISEKI” from the GOD series, which enjoys overwhelming popularity in the Pachislot industry. Additionally, in the Pachinko machine segment, the Group began sales of the LT-featured model “P ETOTAMA 2 KAMIFESU ETOAMA” and “e Ragnador Ayashiki koutei to shuuen no yashahime”.
UEC will continue striving to develop unique and appealing titles, contribute to the revitalization of the entire amusement equipments industry as a whole, while striving to expand its market share.
Integrated Resort Business
The Philippine gaming market is expected to become increasingly competitive going forward. OKADA MANILA will continue to focus on acquiring mass-market customers and aims to increase its customer base through its loyalty marketing program. Furthermore, OKADA MANILA will promote collaboration with travel agencies and other partners across Asia to attract international customers. It also aims to establish marketing offices in key countries to build its international brand presence.
In the non-gaming business, the Pearl Wing room renovation program progressed and additional two floors are scheduled for completion in 2026. To enhance guest in-room experience, tablet upgrades and refreshed guest-experience training programs are planned for rollout.
OKADA MANILA will continue to focus on introducing new gaming products and driving innovation in the market. Our commitment is to deliver fresh and exciting experiences that elevate the gaming landscape and keep our offerings dynamic and engaging for our guests.
Other
In the Media Content Business, we will continue to distribute high quality simulator applications on App Store and Google Play. For “Universal Kingdom,” the subscription-based application, and “Slots Street,” the free-to-play social casino game, we will continue enhancing services to increase user satisfaction.
Overview of Financial Status for Fiscal Year 2025 Financial status for Fiscal Year 2025 is as follows.
Total assets at the end of Fiscal Year 2025 amounted to 373,634 million yen, a decrease of 259,161 million yen over the end of Fiscal Year 2024. This decrease was due to reductions in fixed assets resulting from the recognition of impairment losses and a decrease in work in progress due to amortization, despite increases in cash and deposits, notes and accounts receivable.
Total liabilities at the end of Fiscal Year 2025 amounted to 243,947 million yen, a decrease of 19,117 million yen over the end of Fiscal Year 2024. This decrease was due to repayments of long-term borrowings and new borrowings at consolidated subsidiaries, a decrease in deferred tax liabilities, a decrease in long-term deposits from affiliates, and a decrease in lease obligations due to the appreciation of the Japanese yen against the Philippine peso.
Total net assets at the end of Fiscal Year 2025 amounted to 129,687 million yen, a decrease of 240,043 million yen from the end of Fiscal Year 2024. This was the result of a decrease in retained earnings due to net loss attributable to owners of parent.
Overview of Cash Flows for Fiscal Year 2025
As of the end of Fiscal Year 2025, cash and cash equivalents totaled 36,279 million yen, a decrease of 12,483 million yen compared to the end of Fiscal Year 2024.The primary reasons for increases/decreases in each cash flow category in Fiscal Year 2025 are as follows:
Operating cash flows for Fiscal Year 2025 was positive 11,053 million yen. This was primarily due to the recording of a net gain before income taxes (excluding depreciation, impairment losses, foreign exchange loss and increase in allowance for doubtful accounts) of 10,341 million yen.
The investing cash flows for Fiscal Year 2025 was negative 3,923 million yen. This was primarily due to proceeds from the sale of property, plant, and equipment of 3,371 million yen, proceeds from the sale of shares of subsidiaries of 1,345 million yen, and expenditures for the acquisition of property, plant, and equipment and intangible assets of 9,255 million yen.
Financing cash flows for Fiscal Year 2025 was positive 9,250 million yen. This is primarily due to proceeds from longterm borrowings of 71,990 million yen and repayments of long-term borrowings of 62,633 million yen.
(Reference) Transition of Cash Flow-related Indicators
Fiscal Year
2021
Fiscal Year
2022
Fiscal Year
2023
Fiscal Year
2024
Fiscal Year
2025
Ratio of shareholders’ equity (%)
59.2
58.6
61.8
58.4
34.7
Ratio of shareholders’ equity on market value basis (%)
33.0
30.9
28.3
12.7
16.5
Ratio of interest-bearing liabilities
to cash flows (years)
62.8
4.7
4.2
83.0
12.1
Interest coverage ratio (x)
0.3
2.7
2.0
0.1
1.0
Ratio of shareholders’ equity = shareholders’ equity / total assets
Ratio of shareholders’ equity on market value basis = total market value of shares / total assets Ratio of interest-bearing liabilities to cash flows = interest bearing liabilities / cash flows Interest coverage ratio = cash flows / interests paid
*Note 1: All figures are calculated based on consolidated financial values.
*Note 2: The total market value of shares is calculated based on the number of issued shares minus treasury shares.
*Note 3: Cash flows are represented by operating cash flows.
*Note 4: Interest-bearing liabilities include notes payable and short-term/long-term loans accounted for on the consolidated balance sheet.
Basic Policy Regarding Distribution of Profits and Dividends for the Current and Next Fiscal Years UEC considers the return of profits to shareholders to be one of the highest priorities.
UEC’s basic capital policy is to use capital with even greater efficiency and maintain financial soundness in order to consistently increase corporate value and maintain a solid base for sustained growth. For the dividend, the basic policy is to make stable and consistent payments that reflect results of operations.
It is the UEC’s basic policy to maintain the internal reserve at appropriate levels to ensure a healthy financial base and to strengthen the foundation for business operations as well as to invest necessary funds efficiently in promising businesses.
Stock repurchases will be made after carefully considering all applicable factors and for the purpose of taking actions concerning equity with speed and flexibility that reflect changes in the business climate.
UEC regretfully announces no dividend for Fiscal Year 2025 based on its consolidation that stabilizing the financial base to be an urgent priority for earnings recovery, as there was a significant loss recognized in Fiscal Year 2025.
UEC apologizes that we also anticipate no dividend payment for Fiscal Year 2026. Despite the challenging business environment, UEC is committed to improving business performance in order to provide stable dividends. We kindly ask for the continued support and understanding of our shareholders and investors.
Basic Approach to the Selection of Accounting Standards
To prepare for the application of International Financial Reporting Standards (IFRS), UEC is preparing internal manuals, guidelines and other items and examining schedule for the application of IFRS.
Consolidated Financial Statements and Notes
Consolidated Balance Sheet
(Million yen)
Fiscal Year 2024
(December 31, 2024)
Fiscal Year 2025
(December 31, 2025)
Assets
Current assets
Cash and deposits
23,795
40,000
Notes and accounts receivable - trade
5,804
6,577
Securities
279
121
Merchandise and finished goods
2,453
2,673
Work in process
17,952
15,442
Raw materials and supplies
12,944
12,533
Other
16,481
17,381
Allowance for doubtful accounts
(854)
(1,314)
Total current assets
78,856
93,415
Non-current assets
Property, plant and equipment
Buildings and structures
430,598
234,157
Accumulated depreciation
(70,798)
(81,217)
Buildings and structures, net
359,800
152,939
Machinery, equipment and vehicles
64,827
55,159
Accumulated depreciation
(41,900)
(44,669)
Machinery, equipment and vehicles,
net
22,927
10,489
Lease assets
59,882
26,915
Accumulated depreciation
(8,367)
(7,813)
Leased assets, net
51,515
19,102
Land
7,732
7,714
Construction in progress
9,665
4,388
Others
33,205
25,523
Accumulated depreciation
(27,637)
(22,001)
Others, net
5,568
3,521
Total property, plant and equipment
457,209
198,155
Intangible assets
Other
2,041
1,466
Total intangible assets
2,041
1,466
Investments and other assets
Investment securities
10,250
9,955
Long-term loans receivable
9,490
2,064
Long-term deposits
9,735
9,630
Long-term deposits from subsidiaries and associates
38,351
23,868
Long-term accounts receivable from subsidiaries and associates
9,967
7,553
Deferred tax assets
4,216
8,537
Other
16,860
25,193
Allowance for doubtful accounts
(5,041)
(6,876)
Total investments and other assets
93,830
79,927
Total non-current assets
553,082
279,549
Deferred assets
857
670
Total assets
632,795
373,634
(Million yen)
Fiscal Year 2024
(December 31, 2024)
Fiscal Year 2025
(December 31, 2025)
Liabilities
Current liabilities
Notes and accounts payable - trade
6,290
6,269
Current portion of long-term borrowings
948
2,533
Accounts payable - other
6,020
4,521
Accrued expenses
9,709
8,505
Income taxes payable
43
2,086
Provision for bonuses
93
95
Other
20,234
17,628
Total current liabilities
43,341
41,639
Non-current liabilities
Notes
62,913
62,999
Long-term borrowings
62,152
67,884
Retirement benefit liability
1,099
1,474
Long-term deposits received from subsidiaries and associates
14,233
-
Lease liabilities
61,420
60,949
Deferred tax liabilities
15,326
6,676
Other
2,576
2,323
Total non-current liabilities
219,723
202,307
Total liabilities
263,064
243,947
Net assets
Shareholders’ equity
Share capital
98
98
Capital surplus
18,828
18,828
Retained earnings
342,614
111,189
Treasury shares
(7,298)
(7,299)
Total shareholders’ equity
354,241
122,816
Accumulated other comprehensive
income
Valuation difference on available-for-sale securities
(32)
(33)
Foreign currency translation adjustment
15,693
6,894
Remeasurements of defined benefit plans
(170)
10
Total accumulated other
comprehensive income
15,489
6,871
Total net assets
369,731
129,687
Total liabilities and net assets
632,795
373,634
Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
(Consolidated Statement of Income)
(Million yen)
Fiscal Year 2024
(January 1 to December 31, 2024)
Fiscal Year 2025
(January 1 to December 31, 2025)
Net sales
126,328
122,827
Cost of sales
51,225
50,846
Gross profit
75,102
71,980
Selling, general and administrative expenses
72,077
75,208
Operating profit (loss)
3,024
(3,228)
Non-operating income
Interest income
1,074
729
Dividend income
27
44
Foreign exchange gains
11,263
-
Share of profit of entities accounted for using equity method
9
2,027
Other
582
3,082
Total non-operating income
12,957
5,884
Non-operating expenses
Interest expenses
6,265
9,011
Interest expenses on notes
13,163
6,707
Commission expenses
12
9
Foreign exchange losses
-
1,134
Provision of allowance for doubtful accounts
41
1,854
Other
2,098
2,436
Total non-operating expenses
21,581
21,154
Ordinary loss
(5,599)
(18,497)
Extraordinary income
Gain on sale of non-current assets
104
3,010
Gain on reversal of subscription rights to shares
51
-
Gain on sale of investment securities
-
4
Compensation income
-
3,512
Other
-
2
Total extraordinary income
156
6,530
Extraordinary losses
Loss on sales and retirement of non-current assets
18
107
Loss on valuation of investment securities
81
-
Loss on valuation of shares of subsidiaries and associates
149
4
Loss on sale of shares of subsidiaries and associates
-
536
Loss on litigation
-
400
Impairment loss
34
229,115
Loss on investments in overseas business
1,099
-
Other
16
140
Total extraordinary losses
1,399
230,304
Loss before income taxes
(6,842)
(242,271)
Income taxes - current
116
2,143
Income taxes - deferred
8,610
(12,990)
Total income taxes
8,727
(10,846)
Loss
(15,569)
(231,425)
Net loss attributable to non-controlling interests
-
-
Net loss attributable to owners of parent
(15,569)
(231,425)
(Consolidated Statement of Comprehensive Income)
(Million yen)
Fiscal Year 2024
(January 1 to December 31, 2024)
Fiscal Year 2025
(January 1 to December 31, 2025)
Loss
(15,569)
(231,425)
Other comprehensive income
Valuation difference on available-for-sale securities
(12)
(0)
Foreign currency translation adjustment
3,073
(8,799)
Remeasurements of defined benefit plans
(6)
181
Total other comprehensive income
3,053
(8,618)
Comprehensive income
(12,516)
(240,043)
(Breakdown)
Comprehensive income attributable to owners of parent
(12,516)
(240,043)
Comprehensive income attributable to non-controlling interests
-
-
Consolidated Statement of Changes in Equity
Fiscal Year 2024 (January 1 to December 31, 2024)
(Million yen)
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Balance at beginning of current
period
98
18,828
364,273
(7,298)
375,900
Changes of items during period
Dividends of surplus
(2,324)
(2,324)
Loss attributable to owners of parent
(15,569)
(15,569)
Purchase of treasury shares
-
Disposal of treasury shares
-
Change in scope of consolidation
(3,764)
(3,764)
Net changes of items other than shareholders’ equity
Total changes of items during
period
-
-
(21,659)
-
(21,659)
Balance at end of current period
98
18,828
342,614
(7,298)
354,241
Accumulated other comprehensive income
Share acquisition rights
Total net assets
Valuation difference on available-for-sale
securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehens-
ive income
Balance at beginning of current period
(20)
12,620
(163)
12,436
51
388,388
Changes of items during period
Dividends of surplus
(2,324)
Loss attributable to owners of parent
(15,569)
Purchase of treasury shares
-
Disposal of treasury shares
-
Change in scope of consolidation
(3,764)
Net changes of items other
than shareholders’ equity
(12)
3,073
(6)
3,053
(51)
3,002
Total changes of items during period
(12)
3,073
(6)
3,053
(51)
(18,657)
Balance at end of current period
(32)
15,693
(170)
15,489
-
369,731
Fiscal Year 2025 (January 1 to December 31, 2025)
(Million yen)
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’
equity
Balance at beginning of current period
98
18,828
342,614
(7,298)
354,241
Changes of items during period
Dividends of surplus
-
Loss attributable to owners of parent
(231,425)
(231,425)
Purchase of treasury shares
(0)
(0)
Disposal of treasury shares
-
Change in scope of consolidation
-
Net changes of items other
than shareholders’ equity
Total changes of items during period
-
-
(231,425)
(0)
(231,425)
Balance at end of current period
98
18,828
111,189
(7,299)
122,816
Accumulated other comprehensive income
Share acquisition rights
Total net assets
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Balance at beginning of current
period
(32)
15,693
(170)
15,489
-
369,731
Changes of items during period
Dividends of surplus
-
Loss attributable to owners of parent
(231,425)
Purchase of treasury shares
(0)
Disposal of treasury shares
-
Change in scope of
consolidation
-
Net changes of items other than shareholders’ equity
(0)
(8,799)
181
(8,618)
-
(8,618)
Total changes of items during period
(0)
(8,799)
181
(8,618)
-
(240,043)
Balance at end of current period
(33)
6,894
10
6,871
-
129,687
Consolidated Statement of Cash Flows
(Million yen)
Fiscal Year 2024
(January 1 to December 31, 2024)
Fiscal Year 2025
(January 1 to December 31, 2025)
Cash flows from operating activities
Loss before income taxes and others
(6,842)
(242,271)
Depreciation
18,048
19,707
Impairment loss
34
229,115
Loss (gain) on sales and retirement of non-current assets
(85)
(2,908)
Loss on valuation of shares of subsidiaries and affiliates
149
4
Loss on investments in overseas business
1,099
-
Loss (gain) on valuation of investment securities
81
-
Gain on reversal of subscription rights to shares
(51)
-
Share of loss (profit) of entities accounted for using equity method
(9)
(2,027)
Interest and dividend income
(1,101)
(774)
Interest expenses
6,265
9,011
Interest on notes
13,163
6,707
Foreign exchange losses (gains)
(14,176)
1,396
Increase (decrease) in allowance for doubtful accounts
(274)
2,394
Decrease (increase) in trade receivables
5,335
(815)
Decrease (increase) in inventories
(4,976)
2,640
Increase (decrease) in trade payables
(3,207)
108
Increase (decrease) in accrued consumption taxes
(3,006)
2,153
Decrease (increase) in accounts receivable-other
(1,759)
77
Increase (decrease) in accounts payable-other
(143)
242
Decrease (increase) in other current assets
2,157
(888)
Increase (decrease) in other current liabilities
(5,961)
(4,340)
Increase (decrease) in other non-current liabilities
5,327
17
Others, net
2,741
2,437
Subtotal
12,807
21,985
Interest and dividend income received
346
177
Interest expenses paid
(11,478)
(11,008)
Income taxes paid
(156)
(100)
Net cash provided by (used in) operating activities
1,518
11,053
(Million yen)
Fiscal Year 2024
(January 1 to December 31, 2024)
Fiscal Year 2025
(January 1 to December 31, 2025)
Cash flows from investing activities
Purchase of property, plant and equipment
(8,554)
(8,559)
Proceeds from sales of property, plant and equipment
105
3,371
Purchase of intangible assets
(475)
(696)
Purchase of investment securities
(10)
(10)
Collection of short-term loans receivable
41
390
Payments of long-term loans receivable
(4,650)
-
Collection of long-term loans receivable
10
239
Proceeds from sale of shares of subsidiaries
-
1,345
Others, net
161
(4)
Net cash provided by (used in) investing activities
(13,371)
(3,923)
Cash flows from financing activities
Proceeds from long-term borrowings
60,827
71,990
Repayments of long-term borrowings
(4,973)
(62,633)
Proceeds from issuance of notes
62,832
-
Redemption of notes
(126,016)
-
Cash dividends paid
(2,324)
-
Others, net
(144)
(106)
Net cash provided by (used in) financing activities
(9,798)
9,250
Effect of exchange rate change on cash and cash equivalents
1,108
(176)
Net increase (decrease) in cash and cash
equivalents
(20,543)
16,204
Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation
38
-
Cash and cash equivalents at beginning
of period
44,190
23,795
Increase (decrease) in other cash and cash equivalents
109
(3,721)
Cash and cash equivalents at end of period
23,795
36,279
Notes to Consolidated Financial Statements (Notes Pertaining to Going Concern)
There is no applicable information.
(Changes in Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements) There is no applicable information.
(Changes in Accounting Policies) There is no applicable information.
(Notes to Consolidated Statement of Cash Flows)
*1. The relationship between the balance of cash and cash equivalents at the end of the fiscal year and the amount of items posted in the consolidated balance sheet is as follows.
(Million yen)
Fiscal Year 2024
(January 1 to December 31, 2024)
Fiscal Year 2025
(January 1 to December 31, 2025)
Cash and cash equivalents
23,795
40,000
Other
-
(3,721) (*2)
Cash and cash equivalents
23,795
36,729
*2. At our consolidated subsidiary, TIGER RESORT, LEISURE AND ENTERTAINMENT, INC., in August 2024, when bank borrowings were made, the cash and deposits balance designated as a reserve for debt repayment in the event of insufficient funds, along with the retirement reserve fund deducted from employee salaries and available for withdrawal upon employee retirement, no longer qualified as cash and cash equivalents on the consolidated cash flow statement. This is because these deposits did not meet the definition of cash and cash equivalents, as they were not readily available for withdrawal. Consequently, the relevant amounts have been reduced.
(Additional Information)
There is no applicable information.
(Notes to Segment Information) Segment information
Outline of reportable segments
The segments reported herein by UEC are the units constituting the company, of which segregated financial information is available and which are subject to periodical reviews by the Board of Directors so as to determine allocations of management resources and to evaluate business performance.
UEC has established business divisions classified by products and services at the headquarters and each business division devises comprehensive strategies for domestic or overseas products and services and deploys its business activities.
UEC is composed of segments classified by products or services based on the business divisions and there are two reportable segments: “Amusements Equipments Business” and “Integrated Resort (IR) Business.”
“Amusement Equipments Business” includes research, development, manufacture and sales of Pachislot/ Pachinko machines and peripheral equipments.
“Integrated Resort (IR) Business” operates casino, hotel, food and beverage, retail and leasing, entertainment and real estate development business in Philippines.
Calculation method of net sales, profit/loss, assets, liabilities and other items in each reportable segment Accounting method applied to reportable segments is identical to that of the changes in significant accounting policies for the preparation of consolidated financial statements.
Values in segment profit are based on operating profit.
Inter-segment sales or transfer amounts are based on actual market price.
Information pertaining to amounts of net sales, profit/loss, assets, liabilities and other items in each reportable segment
Fiscal Year 2024 (January 1 to December 31, 2024)
(Million yen)
Reportable Segments
Others (Note)
Total
Amusement Equipments
Business
Integrated Resort (IR)
Business
Net sales
Sales to external customers
43,504
81,981
476
125,963
Inter-segment sales or transfers
-
-
699
699
Total
43,504
81,981
1,176
126,662
Segment profit (loss)
7,312
2,871
349
10,533
Segment assets
63,410
500,243
1,906
565,561
Other items
Depreciation
1,244
16,284
61
17,591
Impairment Loss
-
-
-
-
Increase in property, plant and equipment and intangible assets
2,012
3,507
35
5,555
(Note) “Others” classification consists of business segments that are not included in the reportable segments and is inclusive of the Media Content Business and others.
Fiscal Year 2025 (January 1 to December 31, 2025)
(Million yen)
Reportable Segments
Others (Note)
Total
Amusement Equipments Business
Integrated Resort (IR) Business
Net sales
Sales to external customers
56,708
65,409
534
122,653
Inter-segment sales or transfers
-
-
834
834
Total
56,708
65,409
1,368
123,487
Segment profit (loss)
10,662
(7,114)
615
4,163
Segment assets
73,771
258,804
2,691
335,267
Other items
Depreciation
1,885
17,340
34
19,260
Impairment Loss
-
224,776
21
224,797
Increase in property, plant and equipment and intangible assets
1,483
4,418
35
5,937
(Note) “Others” classification consists of business segments that are not included in the reportable segments and is inclusive of the Media Content Business and others.
Difference between the total amounts in reportable segment and the amounts recorded in consolidated financial statements and primary items of such difference (matters pertaining to difference adjustments)
(Million yen)
Net Sales
Fiscal Year 2024
(January 1 to December 31, 2024)
Fiscal Year 2025
(January 1 to December 31, 2025)
Total of reportable segments
125,486
122,118
Net sales in “Others” classification
1,176
1,368
Eliminated inter-segment transactions
(699)
(834)
Corporate revenue (Note)
365
174
Net sales in consolidated financial statements
126,328
122,827
(Note) Corporate revenue is mainly composed of art museum not attributed to the reportable segments.
(Million yen)
Profit
Fiscal Year 2024
(January 1 to December 31, 2024)
Fiscal Year 2025
(January 1 to December 31, 2025)
Total of reportable segments
10,184
3,547
Profit in “Others” classification
349
615
Eliminated inter-segment transactions
(547)
(502)
Corporate revenue (Note 1)
365
174
Unallocated expenses (Note 2)
(7,325)
(7,063)
Operating profit in consolidated financial
statements
3,024
(3,228)
(Notes) 1. Corporate revenue is mainly composed of art museum not attributed to the reportable segments.
2. Unallocated expenses are mainly composed of selling, general and administrative expenses not attributed to the reportable segments.
(Million yen)
Assets
Fiscal Year 2024
(December 31, 2024)
Fiscal Year 2025
(December 31, 2025)
Total of reportable segments
563,654
332,576
Assets in “Others” classification
1,906
2,691
Unallocated assets (Note)
67,234
38,336
Total assets in consolidated financial statements
632,795
373,634
(Note) Unallocated assets are mainly composed of investments in affiliates, excess funds in working capital (cash and deposits and marketable securities), land, etc. not attributed to the reportable segments.
(Million yen)
Other Items
Total of Reportable Segments
Others
Adjusted Amounts
Amounts Recorded in Consolidated Financial
Statements
Fiscal Year 2024
Fiscal Year 2025
Fiscal Year 2024
Fiscal Year 2025
Fiscal Year 2024
Fiscal Year 2025
Fiscal Year 2024
Fiscal Year 2025
Depreciation
17,529
19,225
61
34
457
446
18,048
19,707
Impairment Loss
-
224,776
-
21
34
4,317
34
229,115
Increase in property, plant and equipment and intangible
assets
5,520
5,902
35
35
202
156
5,757
6,094
(Note) The adjusted amounts in increase in property, plant and equipment and intangible assets are allocated investment amounts.
Related information
Fiscal Year 2024 (January 1 to December 31, 2024)
Information by product and service
Description of this item is omitted because the same information is indicated in Segment Information.
Geographical information
Net sales
(Million yen)
Japan
Philippines
Other Overseas Countries
Total
44,354
81,973
-
126,328
Property, plant and equipment
(Million yen)
Japan
Philippines
Other Overseas Countries
Total
17,097
436,474
3,638
457,209
Fiscal Year 2025 (January 1 to December 31, 2025)
Information by product and service
Description of this item is omitted because the same information is indicated in Segment Information.
Geographical information
Net sales
(Million yen)
Japan
Philippines
Other Overseas Countries
Total
57,429
65,398
-
122,827
Property, plant and equipment
(Million yen)
Japan
Philippines
Other Overseas Countries
Total
12,528
183,748
1,877
198,155
Information pertaining to impairment loss of non-current assets in each reportable segment Fiscal Year 2024 (January 1 to December 31, 2024)
There is no applicable information.
Fiscal Year 2025 (January 1 to December 31, 2025)
After comprehensively reviewing the current business environment, future market trends, and the time required to restore profitability in the Integrated Resort (IR) business, we determined it necessary to revise our future cash flow
projections. As a result, we recorded an impairment loss of 224,776 million yen.
Information pertaining to amortization and unamortized balance of goodwill in each reportable segment Fiscal Year 2024 (January 1 to December 31, 2024)
There is no applicable information.
Fiscal Year 2025 (January 1 to December 31, 2025) There is no applicable information.
Information regarding gain on negative goodwill in each reportable segment Fiscal Year 2024 (January 1 to December 31, 2024)
There is no applicable information.
Fiscal Year 2025 (January 1 to December 31, 2025) There is no applicable information.
(Per Share Information)
(Yen)
Fiscal Year 2024
(January 1 to December 31, 2024)
Fiscal Year 2025
(January 1 to December 31, 2025)
Net assets per share
4,771.28
Net assets per share
1,673.58
Net loss per share
(200.92)
Net loss per share
(2,986.48)
Diluted net income per share
-
Diluted net income per share
-
(Notes) 1. “Diluted net income per share” is not stated, because net loss was posted despite the existence of latent shares with a dilution effect.
The calculation basis for net loss per share and diluted net income per share is as follows:
Fiscal Year 2024 (January 1 to December 31, 2024) | Fiscal Year 2025 (January 1 to December 31, 2025) | |
(1) Net loss per share (yen) | (200.92) | (2,986.48) |
(Calculation basis) | ||
Net loss attributable to owners of the parent (million yen) | (15,569) | (231,425) |
Amount not attributed to common shareholders (million yen) | - | - |
Net loss attributable to owners of the parent applicable to common stock (million yen) | (15,569) | (231,425) |
Average number of shares of common stock during the year (thousand shares) | 77,490 | 77,490 |
(2) Diluted net income per share (yen) | - | - |
(Calculation basis) | ||
Adjusted net income attributable to owners of the parent (million yen) | - | - |
Increase in the number of common stock (thousand shares) | - | - |
(Of which, share acquisition rights (Thousand shares)) | ( -) | ( -) |
Description of the latent shares not included in the calculation of diluted net income per share due to their non-dilutive effect | - | - |
(Material Subsequent Events) There is no applicable information.