Hong Kong’s International Entertainment Corp (IEC) has issued a profit warning on expected losses of up to HK$95 million (US$12.3 million) for the six months to 31 December 2020. Full results are due to be released this week.
IEC leases space at New Coast Hotel Manila to Philippines gaming regulator PAGCOR for gaming operations. However, the property is still to fully resume operations almost a year after closing on 15 March following implementation of a Luzon-wide community quarantine order by President Rodrigo Duterte.
In a Friday filing, the company said it expects to record a loss of “not more than HK$95 million” versus a profit of HK$56.2 million (US$7.2 million) over the same period in 2019.
The loss is mainly due to a substantial decrease in the number of tourists as a result of the COVID-19 pandemic, a decrease in the room occupancy rate and selling price for the hotel segment, and a decrease in the leasing income from PAGCOR as a result of community quarantine requirements across Manila.
IEC revealed last year that it has been granted conditional approval for the issuance of a provisional license from PAGCOR to transform New Coast into an integrated resort-style offering.
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