International Entertainment Corporation expects to report a loss of no less than HK$135 million ($17.3 million) for the financial year ending June 30, 2024. This marks a significant reversal from its HK$18.3 million ($2.4 million) profit recorded in the previous fiscal year.
Several key factors continue to drive this projected loss. Most notably, the company reported an increase of approximately HK$126.8 million ($16.3 million) in general and administrative expenses. A substantial portion of these expenses—HK$40.9 million ($5.3 million)—came from one-time costs associated with establishing and operating a new casino and integrated resort in Manila. These expenses followed PAGCOR’s issuance of a provisional license in September 2023.
In addition, International Entertainment paid higher interest expenses amounting to HK$37.4 million ($4.8 million). These charges resulted from new bank borrowings taken to support the Manila project. Furthermore, the company encountered increased net foreign exchange losses during the year, which added more pressure to its bottom line.
In a stock exchange filing on Monday, the company noted that it remains in active discussions with its auditors. These talks focus on the possible recognition of impairment losses, which could further deepen the company’s financial shortfall.
Despite a projected 7.4 percent increase in revenue, the company emphasized that it has not yet fully realized the financial gains from its Manila operations. Nevertheless, International Entertainment expressed strong optimism. The group stated, “The granting of the Provisional License will enhance its future earning capability and potential.”
In September 2023, the company publicly announced its plan to invest between $1 billion and $1.2 billion in building an integrated resort in Manila. This investment forms part of its official agreement with PAGCOR.
As part of the project, International Entertainment began renovating and expanding the New Coast Hotel Manila. Marina Square Properties Inc., a local subsidiary of the group, owns the hotel. The company also runs an online casino brand called Lavie, which features live-streaming dealers to enhance user engagement and gaming realism.
By pushing forward with its Manila resort development and digital offerings, International Entertainment continues to position itself for long-term growth. However, the company acknowledged that short-term financial headwinds will persist until the new operations begin generating consistent revenue.
