IEC incur losses due to New Coast casino project

International Entertainment Corporation expects to record a loss of no less than HK$135 million ($17.3 million) for the financial year ending June 30th, 2024, compared to a profit of HK$18.3 million ($2.4 million) in the previous year.

Several factors primarily drive the projected loss, including a rise in general and administrative expenses by approximately HK$126.8 million ($16.3 million), largely due to one-time costs of HK$40.9 million ($5.3 million) for establishing and operating a casino and integrated resort in Manila. These costs followed the Philippine Amusement and Gaming Corporation’s (PAGCOR) granting of a provisional license in September 2023.

The company also faced higher interest expenses of HK$37.4 million ($4.8 million) due to bank borrowings for the project, as well as increased net foreign exchange losses during the year.

In a filing to the Hong Kong Stock Exchange on Monday, the company noted ongoing discussions with auditors regarding potential impairment losses, which could further increase the overall loss for the year.

Despite a projected 7.4 percent increase in revenue, the impact of the Manila operations has not yet been fully realized. The company stated, “The Group believes that the granting of the Provisional License will enhance its future earning capability and potential.”

In September last year, International Entertainment announced plans to invest between $1 billion and $1.2 billion to develop an integrated resort (IR) in Manila, as part of its agreement with PAGCOR.

The project includes renovating and expanding the New Coast Hotel Manila, a property owned by the group’s subsidiary, Marina Square Properties Inc. Their brand for their online casino is Lavie and offers live streaming dealers.

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