GGRAsia – International Entertainment posts 12-mth loss of US$17mln

International Entertainment posts 12-mth loss of US$17mln

Sep 26, 2024 Newsdesk Latest News, Philippines, Top of the deck

Hong Kong-listed International Entertainment Corp reported a loss attributable to its owners of just under HKD132.0 million (US$17.0 million) for the 12 months to June 30 this year. That compares with a profit of about HKD18.3 million in the prior financial year, it said in a Wednesday filing.

That was despite a 10.9-percent year-on-year increase in revenue for the period, stated the firm. No recommendation was made for payment of a final dividend.

International Entertainment took over the casino operations at its New Coast Hotel Manila (pictured) property in the Philippine capital in May, under a provisional gaming licence granted by country’s gaming regulator, the Philippine Amusement and Gaming Corp (Pagcor).

During most of the latest reporting period, the group’s gaming operation segment represented the leasing of properties to Pagcor, prior to International Entertainment starting its gaming business in May as an operator under a provisional licence.

The group’s revenue from gaming operations for the year to June 30 stood at nearly HKD170.0 million, up 27.3 percent from the prior year.

“The increase was mainly due to the revenue being generated under the provisional licence since its commencement in May 2024,” noted International Entertainment.

Revenue derived from the hotel operation in the 12-month period was about HKD59.8 million, down 18.8 percent year-on-year. The decline “was mainly due to the renovation of upgrading hotel rooms,” stated the firm.

The company said the financial-year loss was due to an increase in general and administrative expenses. Such spending rose by 110.9 percent year-on-year, to about HKD204.6 million in the latest financial year.

Approximately 42.1-percent of those expenses was related to staff costs. The aggregate amount also included a “one-time expense of approximately HKD40.9 million … as a result of the provisional licence to establish and operate” the casino.

In Wednesday’s filing, International Entertainment said its directors “consider that the grant of the provisional licence will provide an opportunity for the group to participate in the gaming and entertainment [segments], in addition to the existing hotel and hospitality markets in the Philippines”.

In September last year, International Entertainment said it would have to invest between US$1.0 billion and US$1.2 billion to develop an integrated resort in Manila. The investment pledge was part of the agreement with Pagcor.

The project involves the revamp and expansion of the New Coast Hotel Manila property, which is controlled by one of the group’s units, Marina Square Properties Inc.

Regarding the new casino resort, the firm said its “board will consider different financing methods such as bank borrowing and/or equity financing, in order to expand our business and maintain the liquidity of the group.”