Hong Kong-listed International Entertainment Corp says it expects a loss attributable to its owners of “no less than HKD135 million” (US$17.3 million) for the 12 months to June 30 this year. That compares with a profit of about HKD18.3 million in the prior financial year, it said in a Monday filing.
The main reason for the anticipated financial-year loss is an “increase in general and administrative expenses” of approximately HKD126.8 million during the reporting period, including “one-time expenses of circa HKD40.9 million”.
That was associated with the establishment and operation of a casino and the development of an integrated resort (IR) with casino in the Philippine capital, Manila, stated the company.
International Entertainment took over the casino operations at its New Coast Hotel Manila (pictured) in May, under a provisional licence granted by country’s gaming regulator, the Philippine Amusement and Gaming Corp (Pagcor).
The company flagged that it expects its revenue for the latest financial year to rise about HKD15.3 million compared to the prior year.
International Entertainment said it recorded an increase in interest expenses on bank borrowings of about HKD37.4 million during its latest financial year, as well as an increase in net foreign exchange losses.
The firm also said it was working with its auditors regarding any eventual impairment loss that might arise from the expected credit losses. “If any impairment loss is recorded, the expected [annual] loss will increase,” it stated.
In September last year, International Entertainment said it would have to invest between US$1.0 billion and US$1.2 billion to develop an IR in Manila. The investment pledge was part of the agreement with Pagcor.
The project entails the revamp and expansion of the New Coast Hotel Manila property, which is controlled by one of the group’s units, Marina Square Properties Inc.
