Macau junket investor Iao Kun Group Holding Co Ltd saw its share price on Nasdaq in New York fall 12.7 percent on Monday, the same day it announced a net loss of US$12 million for the third quarter ending September 30. The shares closed on Monday trading at US$1.72 per unit.
The firm’s net loss for the period amounted to US$0.20 per share, compared to net income of US$6.9 million, or US$0.11 per share fully diluted, in the equivalent period in 2013.
Iao Kun said the quarterly loss included a change in fair value on a US$7 million consideration related to the acquisition of three Macau VIP gambling rooms: King’s Gaming; Bao Li Gaming; and Oriental.
During the quarter, Iao Kun’s rolling chip turnover – a measure of overall volume of VIP business transacted – rose 5 percent year-on-year to US$4.3 billion, from US$4.1 billion in the year prior period. But revenue decreased by 15 percent year-on-year to US$51.9 million.
The company said this was due to factors including a “below statistical average” win rate of 2.53 percent and “the economic downturn and tightening of credit in mainland China, from where the majority of Iao Kun’s VIP gaming patrons reside”.
For the nine months ended September 30, Iao Kun’s rolling chip turnover was US$13.8 billion, an increase of 9 percent compared to the US$12.7 billion for the nine months ended September 30, 2013.
Net loss for the nine months of 2014 was US$65.8 million, or US$1.09 per share, compared to net income of US$10.9 million, or US$0.22 per fully diluted share, in the same period of 2013. The numbers for the nine months to September 30 included a “change in fair value of contingent consideration of US$62.7 million” related to the gaming room acquisitions, said Iao Kun.
The firm’s gaming promoter partners have operations in five VIP gaming rooms in Macau.
Jun 22, 2018Casino investor Landing International Development Ltd has told GGRAsia it considers it has a “legally-binding contract” for land in the Metro Manila area (pictured) in the Philippines for a...
Jun 22, 2018
Year-on-year decline in overall turnover recorded in 2017 by South Korea’s foreigner-only casinos