Hong Kong-listed International Entertainment Corp reported a loss attributable to its owners of just under HKD132.0 million (US$17.0 million) for the 12 months to June 30 this year. That compares with a profit of about HKD18.3 million in the prior financial year, it said in a Wednesday filing.
That was despite a 10.9-percent year-on-year increase in revenue for the period, stated the firm. No recommendation was made for payment of a final dividend.
International Entertainment took over the casino operations at its New Coast Hotel Manila (pictured) property in the Philippine capital in May, under a provisional gaming licence granted by country’s gaming regulator, the Philippine Amusement and Gaming Corp (Pagcor).
During most of the latest reporting period, the group’s gaming operation segment represented the leasing of properties to Pagcor, prior to International Entertainment starting its gaming business in May as an operator under a provisional licence.
The group’s revenue from gaming operations for the year to June 30 stood at nearly HKD170.0 million, up 27.3 percent from the prior year.
“The increase was mainly due to the revenue being generated under the provisional licence since its commencement in May 2024,” noted International Entertainment.
Revenue derived from the hotel operation in the 12-month period was about HKD59.8 million, down 18.8 percent year-on-year. The decline “was mainly due to the renovation of upgrading hotel rooms,” stated the firm.
The company said the financial-year loss was due to an increase in general and administrative expenses. Such spending rose by 110.9 percent year-on-year, to about HKD204.6 million in the latest financial year.
Approximately 42.1-percent of those expenses was related to staff costs. The aggregate amount also included a “one-time expense of approximately HKD40.9 million … as a result of the provisional licence to establish and operate” the casino.
In Wednesday’s filing, International Entertainment said its directors “consider that the grant of the provisional licence will provide an opportunity for the group to participate in the gaming and entertainment [segments], in addition to the existing hotel and hospitality markets in the Philippines”.
In September last year, International Entertainment said it would have to invest between US$1.0 billion and US$1.2 billion to develop an integrated resort in Manila. The investment pledge was part of the agreement with Pagcor.
The project involves the revamp and expansion of the New Coast Hotel Manila property, which is controlled by one of the group’s units, Marina Square Properties Inc.
Regarding the new casino resort, the firm said its “board will consider different financing methods such as bank borrowing and/or equity financing, in order to expand our business and maintain the liquidity of the group.”
An entity called New NAIA Infrastructure Corp (NNIC), a consortium led by San Miguel Corp (SMC), will on Saturday (September 14) take over operations at Ninoy Aquino International Airport, known as NAIA, the main air hub for the Philippine capital, Manila.
The SMC-led consortium will also start working on a PHP170.6-billion (US$3.02-billion currently) revamp of the country’s main gateway for air travellers.
The new operator announced on Monday plans to reassign operations – over a period of three years – at the airport terminals, as well as some initial revamp work.
According to the proposal, NAIA’s Terminal 2 will only handle domestic flights. Terminal 1 will be used exclusively by flag carrier Philippine Airlines for its international flights.
All foreign airlines will operate at Terminal 3, which will also host the international connections of Cebu Pacific and AirAsia Philippines.
AirAsia Philippines domestic flights will be moved to Terminal 4, said NNIC general manager, Angelito Alvarez.
Speaking at the first edition of an “Aviation Forum” organised by the Economic Journalists Association of the Philippines and SMC, Mr Alvarez said the target – in four to five years – was to expand the airport’s capacity to 62 million passengers annually, from the current 35-million passengers design capacity.
NNIC also aims to increase the runway hourly capacity from 42 air traffic movements to 48 within the first four to five years of taking over operations at NAIA.
He said the current operations of NAIA would not be disrupted, as changes would be implemented gradually.
Other plans in the short term include improved retail and food and drink outlets, repair of existing infrastructure, and road expansion to the airport.
Mr Alvarez also said the plans include an expansion of Terminal 2, easier connection between the terminals, as well as a connection from Terminal 3 to Metro Manila Subway.
The terminal fee at NAIA is expected to go up next year, while other airport fees like landing fees and take-off fees will also be implemented soon, according to NNIC representatives. The new operator said the government had approved the terminal fee hike before the bidding of the NAIA modernisation programme.
At the same event, Department of Tourism undersecretary Verna Buensuceso said that the modernisation of NAIA would help boost the country’s tourism sector.
“These are new developments that we welcome very much to be able to open up new destinations and markets for us,” she said, as quoted by the official Philippine New Agency.
The Philippines aims to draw 7.7 million foreign visitors this year after exceeding its 2023 arrivals forecast.
The country received 3.71 million foreign tourists in the first eight months of 2024, a tally nearly 10.9-percent higher than the prior-year period, according to official data.
