International Entertainment’s loss has widened sharply for the six months ended 31 December 2023, to HK$36.1 million ($4.6 million) due to the development of its Manila integrated resort.
International Entertainment, a Hong Kong Stock Exchange-listed gaming and hotel operator, updated its financial performance via a profit warning on Sunday, revealing that its 2H23 loss has increased by 464 percent from the 2H22 period.
An increase in general and administrative expenses of about HK$38.5 million ($4.9 million) occurred as more expenses, such as legal and professional fees and staff costs, categorized as preparation work for a new casino in Manila.
The country’s gaming regulator, the Philippine Amusement and Gaming Corp (PAGCOR), granted a provisional license to International Entertainment in September of last year. According to the agreement, the company will have to invest between $1 billion and $1.2 billion to develop an integrated resort (IR), including a casino in Manila, the capital of the Philippines.
In the same filing to the Hong Kong Stock Exchange, International Entertainment also notes an increase in interest on bank borrowings of approximately HK$10.5 million ($1.3 million) occurred as a bank loan of approximately HK$608.9 million ($77.8 million) was obtained to finance the funding needs for the Manila IR.
There was also an increase in net foreign exchange loss of approximately HK$11.9 million ($1.52).
Meanwhile, the group’s revenue from gaming operations increased by HK$11.7 million ($14.3 million) due to the recovery of the gaming industry in the Philippines following the reopening of international borders and the lifting of all capacity restrictions and lockdowns.
