On Monday, Hong Kong-listed gaming investor Imperial Pacific International Holdings Ltd (HKG: 1076) reported a net loss of HKD84.37 million (US$10.87 million) for the entire 2015, compared to 2014’s loss of HKD1.56 billion, according to GGRASIA.
An impairment loss to the value of HKD1.30 billion has negatively affected the 2014 results. The loss is related to Macau junket operator Heng Sheng Group’s profit sharing rights, said Imperial Pacific in Monday’s filing.
Citing the struggling Macau gaming industry, Imperial Pacific said in October that it had agreed to end the profit sharing deal with Heng Sheng. It said, following the termination of the deal, the firm recorded an upswing of HKD221 million. The company said its 2015 revenue increased by 66.9 percent year-on-year to HKD931.92 million, which was supported by a growth in gaming revenue.
In November, Imperial Pacific officially opened its “temporary casino” located in a T Galleria shopping center in Garapan, Saipan. As of December 31, 2015, the casino, which had a soft opening in July and enjoyed a stellar November debut, had a total of 34 mass tables and 12 VIP gaming tables. VIP gaming revenue of HKD622.98 million for the year was reported by the company for the year ending December 31, 2015. Last year its VIP rolling chip volume came in at approximately HKD24.20 billion, it said. In 2015, mass gaming operations revenue amounted to HKD65.68 million, while slot machines and electronic table games revenue amounted to HKD19.27 million, Imperial Pacific said. Expenses increased by 32 percent, for the full year, year-on-year to HKD710.99 million. The company attributed the increase in expenses mainly to higher direct casino costs, such as casino license fees and the payment of commissions.
In Monday’s filing, Imperial Pacific stated that all of the relevant permits have been obtained in order to start construction of the Grand Mariana Casino and Hotel Resort in Garapan, Saipan. The Hong Kong-based investment company has pledged it will spend up to US$7.1 billion on an abiding casino resort on Saipan, one of the fifteen Pacific islands of the U.S. Commonwealth of the Northern Mariana Islands.
According to Imperial Pacific, the Grand Mariana Casino and Hotel Resort is slated to open in December 2016, while the launch of the hotel will take place at the first quarter of 2017’s end.