International Entertainment Corporation has announced that it 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.
The projected loss is primarily due to several factors, including an increase in general and administrative expenses of approximately HK$126.8 million ($16.3 million), driven by one-time costs of HK$40.9 million ($5.3 million) for the establishment and operation of a casino and integrated resort in Manila. These costs followed the granting of a provisional license by the Philippine Amusement and Gaming Corporation (PAGCOR) in September 2023.
Additionally, the company incurred higher interest expenses of HK$37.4 million ($4.8 million) related 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 that discussions with auditors regarding potential impairment losses are ongoing, 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. This investment commitment was part of its agreement with PAGCOR.
The project includes the renovation and expansion of the New Coast Hotel Manila, a property owned by the group’s subsidiary, Marina Square Properties Inc.
