Imperial Pacific International (IPI) has issued a profit warning for the 12 months ended 31 December 2018, stating that it expects to record a loss for the year.
In a filing to the Hong Kong Stock Exchange, IPI – which owns and operates Imperial Pacific Resort in Saipan – said its expected turnaround from profit in 2017 to a loss last year is mainly attributable to a decrease in total revenue and the impairment of trade receivables. The company will release its financial results before the end of March.
IPI recorded revenue of HK$13.3 billion from record VIP roll of HK$385.9 billion in 2017, with profit of HK$637 million. However, outstanding receivables were HK$8.5 billion, up from HK$5.9 billion a year earlier.
The company has also endured a lengthy list of construction problems, most recently due to a shortage of workers on the site of Imperial Pacific Resort. Despite the delays, IPI stated earlier this month that it expects to finish construction within this year.
When complete, the property will comprise a 329-room luxury hotel; 14,140 square meters of gaming area; 3,870 square meters of food and beverage outlets; 186 square meters of retail space; 930 square meters of meeting space; 15 villas; and 1,500 square meters of spa/fitness area plus associated infrastructure.
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