Hong Kong-listed International Entertainment Corp (IEC), which last week announced an initial US$25 million investment into early development works on its New Coast Hotel in Manila, has issued a profit warning on an expected HK$90 million (US$11.3 million) loss for the six months to 31 December 2024.
Such loss would be considerably wider than the HK$36.1 million (US$4.5 million) loss reported a year earlier.
In a filing, IEC said the anticipated loss was largely due to an increase in expenses related to operating and managing the casino at New Coast after taking over operations from PAGCOR last year, as well its efforts to develop the property into an integrated resort as per its provisional casino license. These higher expenses were mainly staff costs and depreciation and amortization being incurred, the company added.
IEC also pointed to an increase in interest expenses on bank borrowings in the period, also for the establishment and operation of the casino and development of the integrated resort.
Final results are due to be published on 27 February.
IEC announced recently that it has engaged a contractor to begin expansion and redevelopment works – including a significant increase to gaming capacity – at New Coast Hotel.
The company was in 2023 granted a provisional license by PAGCOR to develop and assume control of the casino and initially entered into a partnership with the regulator under which it aimed to enhance its knowledge of casino operations. IEC assumed full control of the casino floor from PAGCOR in May 2024.
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