International Entertainment Corporation (IEC) reports a significant PHP673.2M loss, citing high costs from its Manila integrated resort development.
International Entertainment Corporation (IEC) was hit with a substantial loss to end the year 2024, despite a revenue increase. In a Hong Kong Stock Exchange filing, they attributed this to the operational and developmental costs linked to an integrated resort project in Manila, the capital of the Philippines.
IEC’s income for the period is expected to dip by around P637.2 million (or HK$90 million) due to the ongoing renovation projects. This is drastically sharper than the P270.2 million (HK$36.1 million) loss recorded the previous year.
Operational Costs of Philippine Casino Project
IEC incurred an uptick in operational costs, particularly general and administration expenses associated with the casino. The renovation eyes expanding the resort’s casino gaming capacity, gaming spaces, and slot machines.
"There was an increase in general and administrative expenses mainly due to staff costs and depreciation and amortization being incurred for operating and managing the casino and the development of an integrated resort by the Group in the City of Manila," IEC said.
IEC officially took over the casino’s operations on May 9, 2024, under a provisional license granted by the Philippine Amusement and Gaming Corporation (PAGCOR) on September 27, 2023. In a filing earlier in February, IEC said it entered into a construction contract with an undisclosed contractor for a P1.4 billion project.
The company also increased interest expenses on bank borrowings that it incurred to establish and operate the casino while simultaneously developing an integrated resort.
What Does This Mean For Shareholders?
IEC is officially expected to release its interim financial results on February 27. With this development, they encouraged shareholders and investors to exert caution given the financial setbacks.
“Shareholders and potential investors are therefore advised to exercise caution whendealing in the shares and/or other securities of the Company,” they said in the filing.
Read related article : Newcoast Hotel and Casino Set For P1 Billion Renovation
.png)
Comments