International Entertainment Corporation (IEC) expects its attributable loss to reach approximately HK500 million for the financial year ended June 30,2026, compared with a loss of HK282.1 million in the previous year.

The projected increase is mainly linked to a HK425 million non-cash accounting loss arising from the revaluation of financial liabilities associated with HK1.6 billion in convertible notes issued during the year.

The company said the accounting adjustment does not represent an operating cash outflow and does not affect the HK$1.6 billion in investment proceeds it received. Excluding the charge, International Entertainment expects its attributable loss to be lower than in the previous financial year.

Gross profit increased during the period as gaming revenue grew at its land-based casino operation and through the provision of gaming platforms to authorized operators.

Higher Casino Revenue Supports Gross Profit

International Entertainment operates LaVie Resort & Casino Manila, the Manila Bay property formerly known as New Coast Hotel Manila.

The group said higher gaming revenue from its land-based casino contributed to notable gross profit growth. Revenue from providing gaming platforms to other authorized operators also supported the result.

Selling and marketing expenses increased during the financial year. International Entertainment attributed the rise to additional marketing campaigns and promotional activities intended to improve the attractiveness and competitiveness of its casino offerings.

The company is also discussing potential impairment losses with its auditor. Any impairment recognized in the final accounts would increase the group’s reported annual loss.

International Entertainment continued developing its gaming operations during the year. In June, the company entered into a cooperation agreement with Total Gamezone Xtreme Inc, a DigiPlus unit, covering the integration, aggregation, provision and operation of online gaming content linked to LaVie Resort & Casino Manila. The arrangement remains subject to regulatory requirements.

In July, gaming equipment supplier Velvix Corp announced an agreement for the initial deployment of 16 CurlX slot machines at LaVie Resort & Casino Manila.

Convertible Notes Drive Expected Loss

The HK$1.6 billion convertible notes were subscribed to by Philippines-listed DigiPlus Interactive Corp.

If the notes are fully converted, DigiPlus would hold a 53.89% stake in International Entertainment based on the company’s enlarged share capital.

The expected HK$425 million charge results from a change in the fair value of financial liabilities associated with the notes. International Entertainment described the adjustment as a non-cash accounting item and said it has no impact on normal business operations or operating cash flow.

As a result, the headline loss is expected to increase even though the company anticipates a smaller underlying loss once the revaluation charge is excluded.

The company has yet to finalize its assessment of potential impairment losses with its auditor. Any additional impairment recognized in the annual accounts would further increase the reported loss.

According to Asia Gaming Brief, International Entertainment expects to publish its finalized annual results on August 28.