The latest news on the gaming industry in Asia

Iao Kun profit down by 54 pct in Q1 2014

May 29, 2014 Latest News, Macau, Top of the deck  

Iao Kun profit down by 54 pct in Q1 2014

Macau VIP room gaming promoter Iao Kun Group Holding Co Ltd posted a sharp profit drop in the first quarter of this year. Net income went down to US$3.2 million, a fall of 54.3 percent from one year earlier, the Nasdaq-listed company said in a statement released on Thursday.

Iao Kun stated the decrease in net income was due primarily to “a net increase” to contingencies for some of its VIP rooms “due primarily to an increase in the forecasted rolling chip turnover performance”. Higher commissions, which jumped to US$55.1 million from US$42.7 million, also had a negative impact on the company’s bottom line.

Non-GAAP income – operating income before amortisation of intangible assets and the change in fair value of contingent consideration liability – was US$17.9 million, compared to US$15.3 million a year before.

Rolling chip turnover reached US$4.8 billion in the first three months of this year, an increase of 16 percent on year-on-year terms.

Iao Kun recorded revenue of US$79.9 million for the period, up by 24.2 percent. The growth was fuelled by a higher-than-normal win rate of 3.60 percent, as well as revenue derived from the acquisition of a new VIP room in June last year.

“Our overall strategy remains unchanged,” company chairman Man Pou Lam said in a statement. “We are committed to expanding our business presence in the Macau VIP gaming market and increasing our market share.”

The company is maintaining its 2014 rolling chip turnover guidance for its five existing VIP rooms of US$17 billion to US$19 billion. Iao Kun operates VIP rooms at StarWorld hotel-casino, Galaxy Macau, Sands Cotai Central, City of Dreams and Le Royal Arc casino.

Related articles
More news

Latest News

Lam Yi Young resigns as deputy CEO Resorts World Sentosa

Lam Yi Young resigns as deputy CEO Resorts World Sentosa

Jun 02, 2023  

Genting Singapore Ltd says Lam Yi Young has resigned from his role as deputy chief executive of Resorts World at Sentosa Pte Ltd. The latter firm is an indirect wholly owned subsidiary of Genting...
Read More
China stimulus package could benefit Macau stocks: CBRE

China stimulus package could benefit Macau stocks: CBRE

Jun 02, 2023  

Pick of the Day


US$8.1 billion

Macau’s casino gross gaming revenue in the five months to May 31