Hong Kong-listed International Entertainment Corp (IEC) fell to a HK$95.0 million (US$12.2 million) loss for the six months to 31 December 2024, up from HK$36.1 million (US$4.6 million) a year earlier on higher casino costs at its Philippine resort, New Coast Hotel in Manila.
However, having taken over casino operations in May from the country’s gaming regulator PAGCOR, IEC also reported a 155% increase in revenue to HK$267.6 million (US$34.4 million), including a 238% increase in revenue from gaming operations to HK$240.0 million (US$30.9 million).
IEC took over control of the casino after being granted a provisional casino license by PAGCOR – part of the company’s commitment to invest at least US$1 billion to convert the property into a world-class integrated resort in the coming years.
“The increase [in revenue] was mainly due to the revenue being generated under the Provisional License since its commencement in May 2024,” the company explained.
“Amid the return of travelers’ mobility under lifting of pandemic measures, the performance in the segment has shown a significant recovery since then. It contributed approximately 89.7% of the Group’s revenue during the Period under review.”
Hotel revenue at New Coast fell from HK$34.1 million (US$4.4 million) a year earlier to HK$27.6 million (US$3.5 million), with IEC citing strong competition in the hospitality industry in the Philippines.
Despite the promising performance of the casino, IEC noted that expenses had almost doubled year-on-year to HK$150.6 million (US$19.4 million), of which 50.2% was staff costs – up 135%.
“This was due to the recruitment of additional staff by the Group to operate and manage the casino under the Provisional License,” it said.
Nevertheless, IEC said it is confident that its upcoming investment into New Coast will prove profitable long-term.
“To undertake the casino and gaming operations, the group has planned to carry out a series of renovation work at the hotel with a view to maintaining the hotel in good service and condition, and upgrading infrastructures and facilities of the Hotel to complement the operation of the casino,” it explained.
“The Board considers that the implementation of the construction works will improve the appearance and condition of hotel facilities, modernize outdated amenities, enhance overall quality of the hotel and promote premium customers’ experiences at both the casino and hotel.
“In the long-term increasing occupancy rates of the hotel and attracting spending activities from visitors at the casino and hotel.
“Moreover, the renovation work will create additional gaming space on the ground floor of the casino. As a result, the maximum number of gaming tables in the casino will increase from the current number of approximately 80 to over 110, and the maximum number of slot machines in the casino will increase from the current number of approximately 500 to over 920.
“The company is optimistic that the enlargement in gaming capacity of the casino will improve the future revenue of the casino.”
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