International Entertainment Corporation’s FY2024/25 Revenue Surges by 146.4% to HK$566.2 Million
- Written by: Telegraph Magazine
This remarkable performance was driven by the robust growth of the Philippine casino gaming industry and the Group's assumption of the casino operation on 9 May 2024 under the Provisional License granted by Philippine Amusement and Gaming Corporation ("PAGCOR").
The Group's revenue from the gaming operation for the Year increased significantly by 200.0% to approximately HK$509.9 million. However, due to the temporary closure of certain hotel rooms for renovation during the Year, the Group's hotel operation revenue was approximately HK$56.2 million, a slight decrease of 6.0% from the Previous Year.
Meanwhile, the Group reported gross profit of approximately HK$273.2 million, representing an increase of 106.3% as compared with approximately HK$132.4 million in the year ended 30 June 2024 (the "Previous Year"). Gross profit margin for the Year was approximately 48.3%, as compared with gross profit margin of approximately 57.6% for the Previous Year. The decrease in gross profit margin was mainly due to the gaming tax and licensing fee incurred after the takeover of casino operation in May 2024.
However, the written-off of leasehold improvements resulting from the Group's casino renovation, coupled with the higher operating costs incurred, including increased staff costs, selling and marketing expenses associated with the transition to managing its own casino, caused the Group to record a loss of approximately HK$282.1 million for the Year (Previous Year: Loss of HK$132.0 million).
Future Outlook
With the government's economic support policies, the growth momentum of the gaming and tourism industries in the Philippines is expected to continue, potentially even surpassing other Asian countries in the near term. The Group believes that the influx of tourists to the Philippines will boost the economy and benefit the gaming and entertainment industry.
To undertake casino and gaming operations, the Group plans to carry out a series of renovations at the hotel. It entered into construction service agreements with a contractor during the Year to commence the renovation work with the goal of maintaining the Hotel's good service and condition, while upgrading its infrastructure and facilities to complement the casino's operations. The implementation of the renovations is expected to improve the appearance and condition of the hotel's facilities, modernize outdated amenities, enhance its overall quality and promote premium customer experiences at both the casino and the hotel. In the long-term, this will increase the Hotel's occupancy rates and encourage spending at the casino and the hotel. Moreover, the renovation work will create additional gaming space on the ground floor of the casino. As a result, the maximum number of gaming tables will increase from approximately 80 to over 110, and the maximum number of slot machines will increase from approximately 500 to over 920 in the coming financial year. The Group is optimistic that the expansion of the Casino's gaming capacity will improve the future revenue of the casino.
The strong revenue growth during the Year demonstrates the Group's dedication and effective strategy to capitalize on the recovering gaming and tourism industry. With the phased completion of its facility upgrades and grand opening of the renovated ground-floor casino in coming financial year, the Group is well-positioned to capture further growth in this flourishing market. The Group is confident that its strategic initiatives will enable the business to achieve robust financial results as it resumes full operational capacity, setting the stage for accelerated growth and enhanced value creation in the year ahead.
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About International Entertainment Corporation (HKEX: 1009)
International Entertainment Corporation is an investment holding company. The Company and its subsidiaries are principally involved in hotel operations, operating the gaming business under provisional licence and leasing of gaming venues at the hotel complex of the Group in Metro Manila in the Republic of the Philippines to a tenant for authorized gaming operation and live poker events in Macau.
