Australia-listed Frontier Capital Group Ltd says it forecasts profit at its recently acquired Hotel Stotsenberg and Casablanca Casino in the Philippines to double after completion of an announced expansion plan.
The company told the Australian Securities Exchange on Thursday that it expects its profit to increase to at least US$11.7 million by 2018 – from US$5 million in 2016 – after the expansion of the casino.
Frontier Capital on November 6 said it was proceeding with the acquisition of the casino property in the Clark Freeport Zone, in the Philippines.
On Tuesday the firm announced a new growth strategy “to be implemented early 2016 into 2018” for the Casablanca Casino. It said it plans to increase the number of gaming tables to 47, while the number of slot machines will increase to 250 from the current 190.
Frontier Capital already has a five-year profit guarantee of US$5 million per annum, provided by the company that will manage and operate the Clark property’s hotel and gaming business. The ASX-listed company said it expects to reach an aggregate profit of US$25 million within the first three full years of operation, according to Thursday’s filing.
“The company fully understands the significant upside potential of its planned expansion and with a forecast profit of US$11.7 million for 2018, we expect a positive re-rating of our share price and market capitalisation,” Frontier Capital’s chief operating officer, Ken Wong, said in a statement.
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"The President [Rodrigo Duterte] had already decided and announced that no construction of a casino on Boracay will be allowed”
Secretary Eduardo Año
Officer-in-charge at the Philippine Department of Local and Interior Government