GGRAsia – Int Ent half-year loss up, mulls financing for Manila IR

Int Ent half-year loss up, mulls financing for Manila IR

Feb 25, 2021 Newsdesk Latest News, Philippines, Top of the deck

Hong Kong-listed International Entertainment Corp reported a loss attributable to shareholders of nearly HKD91.1 million (US$11.7 million) for the six months to December 31, according to a Wednesday filing. That compares to a loss of just above HKD35.6 million in the prior-year period.

The group’s revenue for the second half of 2020 was approximately HKD35.3 million, down 77.8 percent as compared with approximately HKD159.2 million a year earlier.

A unit of International Entertainment, Marina Square Properties Inc, runs the New Coast Hotel Manila (pictured) in the .Philippine capital The subsidiary has a leasing agreement with that country’s casino regulator-cum-operator, the Philippine Amusement and Gaming Corp (Pagcor), for the latter to operate a casino inside that property. It has also been granted a provisional gaming licence for an integrated resort (IR) in Manila.

Revenue derived from the leasing of properties for the six months to December 31 was approximately HKD14.4 million, a decline of 85.8 percent in year-on-year terms.

“The decrease was mainly due to effect of the Covid-19 pandemic,” said the parent company, adding that restrictions imposed by the Philippine government to counter the pandemic had “affected the gaming operations in Manila”.

Revenue from hotel operations fell by 61.5 percent year-on-year, to about HKD20.9 million in the second half of 2020, because of what the company said was a “substantial decrease” in the number of tourists entering the Philippines.

In Wednesday’s filing, International Entertainment also said that representatives of Marina Square Properties were still “discussing and negotiating” with the regulator the “terms and conditions” for a provisional gaming licence for a venue in Manila. The company said in November it had received the necessary initial paperwork regarding such permit.

“We are trying to explore and develop a new operation format with Pagcor,” stated the parent company. Regarding development of its own casino resort, International Entertainment said it would “consider different financing methods” and a “change of capital structure” if necessary, in order to “expand” its business and “maintain the liquidity of the group”.

The gaming permit was linked to plans by Marina Square Properties to “expand and upgrade the current hotel premises, facilities and services,” as stated in previous filings. Such plans included “the establishment and operation of a casino and the development of an integrated resort” in Manila.