International Entertainment Corp (IEC), the Hong Kong-listed group that runs New Coast Hotel Manila in the Philippines’ capital city, saw its revenue plummet 71.4% to HK$64.9 million (US$8.3 million) in the 12 months to 30 June 2021, impacted by COVID-19 restrictions.
Although the reported loss actually narrowed from HK$305.3 million (US$39.2 million) a year earlier to HK$242.0 million (US$31.1 million), the company noted a significant decline in business in FY21 with the declining revenues due to the substantial decrease in the number of tourists, decrease in the room occupancy rate and selling price for the hotel segment, and decrease in leasing income from PAGCOR.
Revenue derived from the leasing of space to PAGCOR at New Coast Hotel Manila, calculated as a percentage of net gaming revenue generated from the gaming area, fell 78.3% to HK$30.6 million (US$3.9 million).
Revenue from hotel operations, comprising room revenue, food and beverage and other hotel service income, declined 58.2% to HK$34.3 million (US$4.4 million) of which almost 90% was room revenue.
There was no income generated from the hosting of live poker events for the year, with IEC licensing the rights to use the PokerStars brand for land-based live events and poker rooms across much of Asia, including in Macau, Japan, South Korea, Vietnam, Singapore, Malaysia and Cambodia.
As previously reported by IAG, IEC is currently preparing to ratify an agreement with PAGCOR that will see the organizations co-manage casino operations at New Coast Hotel Manila in order to help IEC gain management experience ahead of development of its own integrated resort in the coming years. The company was recently granted a provisional license for an IR in Manila.