Profit at casino hotel lessor International Entertainment Corp fell 62 percent year-on-year in fiscal 2015 to HKD61.1 million (US$7.9 million) from HKD161.4 million a year earlier, the firm said in a filing to the Hong Kong Stock Exchange on Monday.
Earnings per share fell 60 percent to HKD0.0390 for the 12 months to March 31, from HKD0.0973 in the year-prior period.
In fiscal 2015, International Entertainment made 64 percent of its revenue from the leasing of hotel premises in the Philippines to the country’s casino regulator-cum-operator, the Philippine Amusement and Gaming Corp, also known as Pagcor.
But in fiscal 2015, group revenue fell 5.9 percent to approximately HKD366.8 million, compared with approximately HKD389.7 million for the year ended March 31, 2014.
“The decrease was mainly due to the decrease in the net gaming revenue from the local gaming area of the casino operated by Pagcor as lessee of the group’s premises during the year, resulting from new independent casinos coming into operation in the vicinity,” stated International Entertainment.
A local unit of International Entertainment receives a monthly rental income based on an agreed percentage of net gaming revenue generated from a casino at New World Manila Bay Hotel, the latest filing said. Until December 2014, the property was branded as Hyatt Regency Hotel and Casino Manila.
International Entertainment is controlled by the family of Hong Kong billionaire Cheng Yu Tung, who has been a long-term business partner of Stanley Ho Hung Sun, a founder of Macau casino concessionaire SJM Holdings Ltd.
In January 2014, International Entertainment said it was interested in buying a 70-percent economic interest in Macau junket investor Suncity International Holdings Ltd. On December 31, the provisions of a term sheet expired without any definitive agreement.
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”As the Macau gaming revenue structure is now leaning heavily towards the mass business … once the border fully reopens, the recovery from mass should drive the sector to bounce more swiftly”
Vitaly Umansky, Louis Li and Shirley Yang
Analysts at Sanford C. Bernstein