Hong Kong-listed International Entertainment Corp (IEC) has issued a profit warning, expecting to record a “loss attributable to the owners of the company of no less than HK$135m ($17.32m) for the year.” This was based on the preliminary review of the unaudited consolidated management accounts of the group for H1 2024.
The loss was attributed to an “increase in general and administrative expenses” of HK$126.8m, including one-time expenses of around HK$40.9m for a provisional licence from the Philippine Amusement and Gaming Corporation (PAGCOR) to establish and operate a casino in Manila, and an increase in interest rates for its borrowing of about HK$37.4m for said casino licence and establishment.
While the group anticipated a revenue increase of HK$15.3m, or a 7.4% year-on-year increase, it was also noted that the revenue from the gaming operation segment, which began after receiving its provisional licence on 9 May 2024, was not yet fully realised for an entire year.
The group believes that the provisional licence will significantly boost its future earnings and potential, marking a major milestone that would allow the group to independently operate and manage casino and gaming activities.
A board meeting will be held on 16 September 2024 for further discussion and to finalise IEC's actual financial review for 2024.
In May 2024, IEC received a provisional licence to operate New Coast Hotel in Manila, Philippines. The group aimed to convert the hotel into a fully-fledged integrated resort.
IEC also owned L'Arc Macau, in which an ex-junket manager had embezzled about HK$100m from in 2006.
