Plummeting VIP volume on the back of the FIFA World Cup, tightening marker credits and disruption caused by typhoon Yutu saw Imperial Pacific International (IPI) suffer a 58.2% year-on-year decline in revenue to HK$3.26 billion (US$415.3 million) at its Saipan integrated resort for the 12 months to 31 December 2018.
The results also pushed IPI to a loss attributable to owners of the company of HK$2.97 billion (US$378.4 million), compared with a profit of HK$637 million through 2017.
In detailing the challenges it faced throughout the year, IPI noted a series of reasons for the decline – among the most notable being damage caused by Typhoon Yutu in October 2018 which saw Saipan’s international airport shut down for a month.
VIP volume at Imperial Pacific Resort subsequently fell substantially – from HK$385.86 billion in 2017 to HK$126.26 billion this time around – while VIP revenue declined 60.4% from HK$7.35 billion to HK$2.91 billion.
However, IPI also continues to struggle in recouping player debts. The company said it had written off trade receivables of HK$4.69 billion in 2018, leaving outstanding receivables at HK$9.67 billion. Of those more than 50% have been outstanding for over a year.
Despite such setbacks and ongoing concerns of labor supply, IPI said it remains confident in the future of Imperial Pacific Resort, with four new junket operators set to launch at the property in 2019
“Having the advantage of CNMI’s relatively low tax regime, we believe we will be able to offer very competitive commission rates to potential gaming promoters,” IPI said.
“We currently have three villas and four yachts in place as well as hotel rooms secured from local high quality hotels to better provide accommodations to our VIP customers. We also expect the successional opening of resort villas and hotels rooms of our resort starting next year will, to a great extent, enhance our capacity to better accommodate patrons.
“Benefiting from Saipan’s favorable weather, stunning attractions, proximity location and flexible visa policies, with more hotels room to be built and opened, we believe visitation to the Island of Saipan still has great potential.”
IPI, which has spent US$792 million on Imperial Pacific Resort as of 31 December 2018, told Inside Asian Gaming late last year that it remained on track to complete construction well before its 28 February 2021 deadline.
RelatedPosts
