GGRAsia – Imperial Pacific’s first-half loss widens to US$2.5 mln

Imperial Pacific’s first-half loss widens to US$2.5 mln

Sep 29, 2014 Newsdesk Latest News, Macau, Top of the deck, World

Macau junket investor Imperial Pacific International Holdings Ltd posted a net loss of HKD19.6 million (US$2.5 million) for the six months ended June 30, 2014. That compares with a loss of HKD1.9 million a year earlier.

“Basic loss per share was HKD0.25 as compared with last period basic loss per share of HKD0.02,” the company said in a filing to the Hong Kong Stock Exchange.

Imperial Pacific – formerly known as First Natural Foods Holdings Ltd – is principally engaged in the sharing of the profit stream from a junket operator in Macau, the development and operation of an integrated resort on the western Pacific island of Saipan and in the processing and trading of food products.

The company’s revenue increased by 15.4 percent year-on-year to HKD293 million in the first half of 2014. But the firm had already warned of a significant loss due “to the increase in administrative and other expenses due to the development of integrated resort business on the island of Saipan”.

The Lottery Commission of the Commonwealth of the Northern Mariana Islands awarded an exclusive casino licence to a unit of Imperial Pacific in July. The firm said the segment recorded a loss of HKD14.0 million in the six months to June 30, as the project for the integrated resort was under development stage.

The Hong Kong-listed firm last week said it would more than double its investment in the casino resort project to US$7.1 billion.

The food processing business also contributed for the increase in the half-year loss. The segment recorded a loss of approximately HKD14.1 million in the first half of 2014.

The negative results were offset by the performance of Macau junket firm Hengsheng Group, in which Imperial Pacific invested HKD400 million in March.

Accrued revenue of approximately HKD11.8 million was derived from the sharing of Hengsheng’s profit stream since completion of the acquisition on March 19, Imperial Pacific said.

In its interim report, Imperial Pacific confirmed that it will allocate more resources to the gaming business, especially for development of the integrated resort on Saipan. The firm last week said it would seek potential investors to dispose of part or all of its food processing and trading business.