GGRAsia – Imperial Pacific yearly net loss narrows to US$11 mln

Imperial Pacific yearly net loss narrows to US$11 mln

Mar 15, 2016 Newsdesk Latest News, Top of the deck, World

Hong Kong-listed gaming investor Imperial Pacific International Holdings Ltd posted on Monday a net loss of HKD84.37 million (US$10.87 million) for the full year 2015, compared to a loss of HKD1.56 billion in the prior year.

The 2014 results had been negatively affected by an impairment loss to the value of HKD1.30 billion related to profit stream sharing rights for Macau junket operator Heng Sheng Group, Imperial Pacific said in Monday’s filing.

In October Imperial Pacific said it had agreed to terminate the profit share deal with Heng Sheng, citing the downturn in Macau’s gaming industry. The firm recorded a gain of HKD221 million following the termination of the deal, it said.

The company said its revenue for full-year 2015 increased 66.9 percent year-on-year to HKD931.92 million, supported by a growth in gaming revenue.

Imperial Pacific had an official opening of its “temporary casino” on Saipan in November. The casino property – which had a soft opening in July – had a total of 12 VIP gaming tables and 34 mass tables as of December 31, 2015.

The company reported VIP gaming revenue of HKD622.98 million for the year ended December 31, 2015. VIP rolling chip volume reached approximately HKD24.20 billion last year, it said.

Revenue from mass gaming operations amounted to HKD65.68 million in 2015, while revenue from the slot machines and electronic table games handle amounted to HKD19.27 million, said Imperial Pacific.

For the full year, expenses increased by 32 percent year-on-year to HKD710.99 million. The increase in expenses was mainly attributable to higher direct casino costs, such as the payment of commissions and casino licence fees.

Imperial Pacific said in Monday’s filing that it has already obtained all the relevant permits to start construction of the Grand Mariana Casino and Hotel Resort in Garapan, Saipan. The firm has pledged to spend as much as US$7.1 billion on a permanent casino resort on Saipan, a Pacific island that forms part of the U.S. Commonwealth of the Northern Mariana Islands.

The casino at the new property at Garapan is slated to open “in December 2016”, while the hotel will launch at the end of the first quarter of 2017, Imperial Pacific said.