International Entertainment warns of wider losses for FY2025
The group cites higher operating and marketing costs linked to casino operations in Manila, alongside one-off write-offs and interest expenses.
Key points:
– International Entertainment expects a pre-tax loss of at least HK$260m for FY2025, up from HK$162.2m the previous year
– The increase is tied to higher staff, marketing and finance costs following its takeover of a Manila casino
– One-off asset write-offs linked to renovation works also added to expenses
International Entertainment Corporation has issued a profit warning for the financial year ended 30 June 2025, stating it anticipates a pre-tax loss of no less than HK$260m ($33.4m). This compares with a HK$162.2m loss recorded in FY2024.
According to the company’s filing, the increase is mainly due to higher administrative and staff costs, marketing expenses from promotional campaigns and interest payments tied to bank borrowings. These followed the group’s takeover of casino operations in Manila in May 2024 under a provisional licence granted by PAGCOR.
The company also noted a one-off write-off of property, plant and equipment as part of renovation work at the Manila casino.
Good to know: Phase I and II contracts for the redevelopment were signed in February and May this year, requiring demolition of certain existing improvements
The Hong Kong Legislative Council recently approved a new basketball betting licence for the Hong Kong Jockey Club, with legalised operations expected to begin in 2026.
The group added that its results are still being finalised and discussions with auditors are ongoing, particularly regarding possible impairment losses. If such impairments are recorded, the pre-tax loss could be higher than expected.
International Entertainment is scheduled to publish its full-year results on 26 September. It reminded shareholders that the current figures are preliminary and unaudited.
The casino development in Manila remains central to the company’s strategy. While the expansion is expected to drive future growth, the first full year of operations has brought significant costs in staffing, compliance and promotional activities.
Chairman and CEO Ho Wong Meng signed off on the disclosure, which was made in compliance with Hong Kong’s Listing Rules and the Securities and Futures Ordinance.
The board said shareholders and investors should exercise caution when dealing in company securities until audited results are confirmed.
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