Hong Kong-listed International Entertainment Corp (IEC) has reported a loss attributable to owners of the parent of HK$36.1 million (US$4.6 million) for the six months to 31 December 2023, widened from a HK$6.4 million (US$817,400) loss in the prior year period due to costs associated with assuming casino operations at its Manila hotel.
As reported by Inside Asian Gaming, IEC was last September granted a Provisional Casino License by Philippines gaming regulator PAGCOR under which it will soon take over gaming operations from PAGCOR at the company’s New Coast Hotel Manila. IEC will also invest up to US$1.2 billion to transform the hotel into an integrated resort, complete with 800 5-star luxury hotel rooms, a casino, restaurants, leisure facilities and shopping arcades.
Releasing its 1H24 financials overnight, IEC said the widened loss took into account a HK$50 million (US$6.4 million) deposit paid into an escrow account in accordance with a requirement of the Provisional License granted last year. It also included a 91.9% increase in “general and administrative expenses” to HK$80.4 million (US$10.3 million) due to the preparation work done for taking over of the casino operation under the Provisional License.
While the loss widened, revenues also increased for the period, with IEC reporting group-wide revenues of HK$105.1 million (US$13.4 million), up 11.7% year-on-year. This included a 19.5% increase in income from gaming operations – comprising the lease of space and gaming equipment at New Coast to PAGCOR – to HK$71.0 million (US$9.1 million), while hotel revenue remained stable year-on-year at HK$34.1 million (US$4.4 million).
Looking ahead, IEC said the grant of a Provisional License and planned IR development will be a “milestone development of the Group which denotes that the Group is able to operate and manage casino business and gambling activities independently.”
The company also said it has “taken part in management of the existing casino through its participation in the management committee [alongside PAGCOR]” and has “gained its expertise in the operation and management of casino. Upon the commencement of the operation of the Provisional Licence, the operation and management of the existing casino will be transferred to the Licensee to run the casino.”
