International Entertainment Corp, listed in Hong Kong, reported a loss of just under HKD132.0 million (US$17.0 million) attributable to its owners for the 12 months ending June 30 this year, a stark contrast to the HKD18.3 million profit from the previous financial year, according to a Wednesday filing.
Despite a 10.9 percent year-on-year revenue increase during the period, the firm did not recommend a final dividend payment.
In May, International Entertainment assumed control of casino operations at its New Coast Hotel Manila property in the Philippine capital, under a provisional gaming license granted by the Philippine Amusement and Gaming Corp (PAGCOR).
For most of the reporting period, the group’s gaming operations involved leasing properties to PAGCOR. However, in May, International Entertainment began its gaming business under the provisional license.
Revenue from gaming operations for the year ending June 30 reached nearly HKD170.0 million, reflecting a 27.3 percent increase from the previous year. The firm attributed the rise to revenue generated since the provisional license commenced in May 2024.
Hotel operation revenue for the 12-month period fell by 18.8 percent year-on-year to approximately HKD59.8 million, a decline the firm attributed to room renovations.
The company cited an increase in general and administrative expenses, which surged 110.9 percent year-on-year to about HKD204.6 million, as the reason for the financial-year loss. Approximately 42.1 percent of those expenses were staff-related, and the total included a one-time expense of about HKD40.9 million associated with the casino’s provisional license.
International Entertainment’s directors expressed optimism in Wednesday’s filing, stating that the provisional license offers the group an opportunity to expand into the gaming and entertainment sectors, alongside its existing hotel and hospitality operations in the Philippines.
Last September, the company announced that it would need to invest between US$1.0 billion and US$1.2 billion to develop an integrated resort in Manila, as part of its agreement with PAGCOR.
The project involves upgrading and expanding the New Coast Hotel Manila property, which is managed by one of the group’s subsidiaries, Marina Square Properties Inc. To fund the new casino resort, the company’s board plans to explore financing options such as bank borrowing or equity financing to expand the business while maintaining liquidity.
The casino in New Coast hotel offers both land based casino and online gaming to its customers.
