International Entertainment Corp, listed in Hong Kong, reported a loss of nearly HKD132.0 million (US$17.0 million) for the 12 months ending June 30. The loss was attributable to the company’s owners and marked a sharp reversal from the HKD18.3 million profit in the previous fiscal year. The company disclosed this shift in a Wednesday filing.
Although total revenue rose by 10.9 percent year-on-year, the board chose not to declare a final dividend. That decision followed a major operational shift that occurred during the period.
In May, the group took over casino operations at its New Coast Hotel Manila in the Philippine capital. This move came under a provisional gaming license issued by the Philippine Amusement and Gaming Corp (PAGCOR). Until that point, the firm had mainly leased gaming properties to PAGCOR.
However, with the provisional license in hand, International Entertainment launched its own casino operations starting May 2024.
Gaming revenue surged to nearly HKD170.0 million for the fiscal year ending June 30. This marked a 27.3 percent increase compared to the prior year. The company credited the growth to revenue earned after it began operating under the new license.
In contrast, hotel operations underperformed. Revenue from this segment dropped by 18.8 percent year-on-year, settling at around HKD59.8 million. The company linked this drop to ongoing room renovations at the New Coast Hotel.
Expenses also weighed heavily on performance. General and administrative costs soared by 110.9 percent year-on-year, reaching approximately HKD204.6 million. Staff-related costs accounted for 42.1 percent of these expenses. Moreover, the firm included a one-time charge of about HKD40.9 million tied to the provisional casino license.
Despite the financial setback, the company remains optimistic. In the same filing, its directors stated that the provisional license provides a valuable opportunity to grow in the gaming and entertainment sectors. This expansion aligns with its existing hotel and hospitality portfolio in the Philippines.
Looking ahead, International Entertainment plans a major development in Manila. Last September, the company announced that it would need to invest between US$1.0 billion and US$1.2 billion to build an integrated resort. This plan forms part of its agreement with PAGCOR.
The new project will involve upgrading and expanding the New Coast Hotel Manila. Marina Square Properties Inc., a subsidiary of the group, currently manages the property.
To finance this expansion, the board will consider several funding strategies. These include bank loans and equity financing. The goal is to grow the casino and hotel business while preserving liquidity.
The New Coast property already offers both land-based casino services and online gaming. The company aims to build on this foundation with its integrated resort development.
