VIP gambling room investor Iao Kun Group Holding Co Ltd narrowed its net loss for the second quarter of 2015, it said in a statement to Nasdaq in New York on Thursday.
Such loss – measured by U.S. generally accepted accepted accounting principles (GAAP) – was US$23.8 million, or US$0.38 net loss per share (basic and diluted), compared to a net loss of US$56.7 million, or US$0.94 net loss per share (basic and diluted), for the same period of 2014.
Macau’s VIP gambling market “continues to be affected by the ongoing macro environment,” chairman of Iao Kun, Lam Man Pou, said in a statement that accompanied the firm’s results.
Iao Kun’s VIP room gaming promoters and collaborators currently participate in the promotion of five VIP gaming facilities in Macau.
The year-on-year reduction in net loss in the quarter was “primarily a result of the change in contingent consideration, which was a gain of US$0.2 million for the three months ended June 30, 2015, compared to a loss of US$45.1 million for the prior-year period, as well as lower commission to junket agents for the three months ended June 30, 2015,” said Iao Kun.
In the second quarter the firm’s rolling chip turnover fell by 63.8 percent to US$1.7 billion, compared to the US$4.7 billion achieved in the prior-year period. Recording rolling chip turnover enables casinos to measure the aggregate amount of VIP players’ bets and overall volume of VIP gaming room business transacted.
During the second quarter of 2015, Iao Kun incurred a one-time US$17.8-million “impairment of goodwill,” it added in its statement to Nasdaq.
The group’s rolling chip turnover for the six months ended June 30 was US$3.9 billion, a decrease of 58 percent compared to US$9.4 billion for the first half of 2014.
For the three months ended June 30, Iao Kun recorded revenue of US$21.9 million, a 56 percent decrease from the same period of 2014, primarily due to lower rolling chip turnover during the quarter.
“The decrease in revenue was also due to a decreasing trend of VIP baccarat, consistent with the overall decline of gaming revenue in Macau; and the economic downturn and ongoing anti-corruption campaign in mainland China, where the majority of Iao Kun’s VIP gaming patrons reside, as well as the continued tightening of government policies in mainland China,” the company stated.
Iao Kun said its six month dividend payable for 2015 would be approximately US$0.014 per share, a reduction of US$0.012 per share from the prior-year period.
Thursday’s statement said that for the first seven months of 2015, Iao Kun’s rolling chip turnover was US$4.36 billion – an average of US$0.62 billion per month – down 61 percent year-on-year, compared to US$11.03 billion, an average of US$1.58 billion per month for the first seven months of 2014.
The company added it was adjusting its 2015 rolling chip turnover guidance for its five existing VIP rooms in Macau to between US$6.0 billion and US$7.0 billion, from a previous range of US$7.0 billion and US$8.5 billion.
Iao Kun said in May it had completed a deal allowing the firm to expand its casino junket operations to Crown Perth Casino and to Crown Melbourne Casino, in Australia, two venues operated by Crown Resorts Ltd.
“We continue to explore overseas alternatives, such as our recent acquisition of Australian profit interests, to expand our overall VIP presence and provide additional diversification to our current sources of revenue,” said Mr Lam in Thursday’s earnings statement.
Feb 22, 2019A statement issued on Friday on behalf of Japanese gaming entrepreneur Kazuo Okada (pictured) said that Hong Kong’s anti-graft agency the Independent Commission Against Corruption (ICAC), had...
Feb 22, 2019
Feb 22, 2019
"We are building momentum and continuing to grow our business while at the same time operating more efficiently"
Chief executive and president of casino equipment maker and lottery services supplier Scientific Games