Hong Kong-listed International Entertainment Corp, the parent company of LaVie Resort & Casino in Manila, has issued a profit warning for the year ended 30 June 2026 on an expected loss of HK$500 million (US$63.8 million) – widened from HK$282.1 million (US$36.0 million) a year earlier.
The loss was, however, non-cash in nature with the group explaining that it included a loss of approximately HK$425 million (US$54.2 million) arising from the fair value change of financial liabilities at fair value through profit or loss in relation to the HK$1.6 million (US$205 million) in convertible notes it issued to Philippines online gaming giant DigiPlus Interactive Corp earlier this year. This essentially means the accounting value of IEC’s debt liability is considered to have increased by HK$425 million.
IEC also pointed to an increase in selling and marketing expenses for the period, primarily attributed to higher expenditure on marketing campaigns and promotional activities aimed at enhancing the attractiveness and competitiveness of the casino at LaVie.
Without the fair value change on the convertible notes, the company said it expects it would report a narrowed loss when its final results are released later this month.
While DigiPlus has yet to convert the notes it acquired, it would upon conversion assume a controlling 53.89% stake in IEC and LaVie.
DigiPlus has stated that by assuming an interest in a land-based casino-resort, it would “strengthen DigiPlus’ omnipresent entertainment ecosystem by adding a strategic offline platform that seamlessly connects with its digital network, enhancing brand activation, player engagement, and customer experience across both physical and online touchpoints.”
The two companies – IEC and DigiPlus – recently entered into a cooperation agreement under which they plan to launch a new online gaming business linked to LaVie.
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