International Entertainment Corporation (IEC) is advancing its vision to turn New Coast Hotel Manila, Philippines, into a leading integrated resort, marking key progress with the start of junket operations and the upcoming relaunch of its ground-floor casino. The company outlined these developments in its 2025 Annual Report, which detailed both the strategic investments and transitional challenges tied to its redevelopment project.
Casino Redevelopment and Operational Transition
After years of leasing the casino area to the Philippine Amusement and Gaming Corporation (PAGCOR), IEC took full control of operations in 2024 under a provisional gaming license. The agreement came with a pledge to invest up to US$1.2 billion in the site’s transformation into a modern integrated resort.
Chairman and CEO Ho Wong Meng described the redevelopment as a comprehensive overhaul encompassing both hotel and casino facilities. Although the construction phase temporarily reduced operating capacity and affected short-term earnings, he emphasized that the ongoing work would enhance the group’s long-term competitiveness.
“The coming financial year will see the gradual completion of our renovation works, culminating in the grand opening of our spectacular new ground-floor casino,” Ho said. “The expanded area for more gaming tables and slot machines will significantly enhance our gaming capacity, allowing us to accommodate a larger number of players and capture a greater share of the thriving market.”
The planned expansion aligns with IEC’s goal of increasing its footprint within Manila’s vibrant gaming sector. The upgraded gaming floor is designed to appeal to a broader clientele and position the property more competitively among the capital’s major casino destinations.
Financial Impact of the Redevelopment Phase
The large-scale renovations have taken a financial toll on the company during the transition period. In the 12 months ending June 30, 2025, IEC reported a widened net loss of HK$282.1 million (US$36.3 million), compared to nearly HK$132 million the year prior. The results were influenced by a one-time write-off of HK$109.9 million (US$14.1 million) tied to the demolition of certain leasehold improvements on the casino’s ground floor.
Revenue, however, showed remarkable growth despite the higher costs. Total revenue climbed 146.4% year-on-year to almost HK$566.2 million, while gaming revenue surged 200.1% to HK$509.9 million. The company attributed the increased expenses primarily to staff costs, marketing, and other operational needs resulting from the transition to direct management of its casino operations.
“Despite the short-term impact of these transformations on our bottom line, we believe they are essential investments for driving future growth,” Ho noted, as reported by Inside Asian Gaming. He added that the investments being made now would serve as a foundation for sustained profitability once the resort resumes full capacity.
A key step in IEC’s growth strategy has been the diversification of its revenue streams. During the fiscal year, the company began leasing parts of its gaming area to a junket operator—marking a new business channel aimed at complementing its traditional casino revenue.
“Meanwhile, building on our strong land-based casino gaming revenue, we have diversified our revenue streams by leasing gaming venues to a junket operator starting this year,” Ho stated. “Given our strong revenue growth momentum, we are optimistic about making significant progress toward sustained and enhanced profitability in the future.”
IEC’s management views these changes as the groundwork for a more robust and resilient operation. The upgraded gaming spaces and expanded entertainment options are expected to drive customer engagement and help the company capture a greater share of the Philippine gaming market.
Ho reaffirmed IEC’s confidence in its strategy, saying, “We are confident that our strategic initiatives will enable us to achieve strong financial results as we resume full operational capacity. The foundation we laid this year has set the stage for accelerated growth and enhanced value creation in the year ahead.”
