Hong Kong-listed International Entertainment Corp. delivered a loss for 2H24 that was in line with company expectations, totaling HK$94.75 million ($12.18 million), despite a strong increase in gaming revenue.
The group had previously indicated in a profit warning that it was expecting a loss of no less than HK$90 million ($11.6 million) for the period, largely driven by elevated operating costs.
International Entertainment took over the casino operations at New Coast Hotel Manila in May 2024 under a provisional gaming license granted by the Philippine Amusement and Gaming Corporation (PAGCOR) in September 2023.
In a filing late last week, the company indicated that it had seen revenue from its gaming operation reach nearly HK$240 million ($30.85 million), compared to HK$71 million ($9.13 million) in the same quarter of 2023. However, the segment’s results were still negative, at HK$48.96 million ($6.3 million).
Hotel revenue fell slightly, to HK$27.62 million ($3.55 million), from HK$34.11 million ($4.4 million) in 2H23, which the group attributes to some hotel rooms being closed for renovation. The group also highlighted that ‘competition in the hospitality industry in the Philippines was strong during the period’.
Total revenue for the group totaled HK$267.62 million ($34.4 million), a 154.55 percent yearly increase.
Despite having a segment dedicated to live poker events in Macau, no such events were held during the period, meaning no revenue was generated from the segment.
The group did not recommend the payment of an interim dividend for the period.
A company subsidiary, Marina Square Properties, Inc. (MSPI) is still involved in a tax dispute with the Philippines’ Bureau of Internal Revenue (BIR) regarding alleged deficiency taxes totaling nearly PHP5.01 billion ($86.3 million). The group notes that ‘the directors of the Company believe that MSPI has valid legal arguments to defend the […] tax disputes’. The group has not made any provisions for the tax disputes in the interim results.
