International Entertainment Corp (IEC), the Hong Kong-listed operator behind New Coast Hotel and Casino in Manila, Philippines, reported strong revenue growth in its first year under a provisional gaming license, though rising expenses and redevelopment costs drove its losses deeper for fiscal year 2025.
Gaming Growth Offsets Hotel Decline
For the 12 months ending 30 June 2025, IEC recorded revenues of HK$566.2 million (US$72.8 million), a 146% increase compared with the previous year. Gaming operations contributed the overwhelming majority, climbing 200% year-on-year to HK$509.9 million (US$65.5 million) and making up just over 90% of group revenue.
By contrast, hotel revenue slipped by around 6% to HK$56.2 million (US$7.2 million) as sections of the property remained closed for renovations. The group also saw no income from its “live events” segment in Macau poker tournaments.
Despite the top-line growth, IEC ended the year with a net loss of HK$282.1 million (US$36.3 million), more than double the HK$132 million loss posted in the previous year. The company attributed the downturn to higher staffing, marketing, and depreciation costs, alongside a one-off write-off linked to the resort’s ongoing redevelopment. Marketing and promotional spending surged by over 1,600%, reaching HK$74.5 million, as IEC sought to boost visibility and competitiveness during its first full year of operating the casino independently from PAGCOR.
Expansion Plans and Renovation Works
The company secured a provisional gaming license in May 2024, allowing it to assume full control of casino operations from the Philippine Amusement and Gaming Corporation (PAGCOR). The license requires IEC to commit between US$1 billion and US$1.2 billion toward transforming New Coast into a large-scale integrated resort.
Renovation efforts are underway, with the first phase beginning in February 2025 and a second construction contract worth approximately PHP1.05 billion (US$18.6 million) signed in June. These works aim to modernize the hotel’s facilities, upgrade amenities, and create additional gaming space. Once completed, the number of gaming tables is expected to expand from 80 to more than 110, while slot machines will grow from 500 to over 920 units.
In its results statement, IEC’s Board of Directors noted that “the implementation of the renovations will improve the appearance and condition of the hotel’s facilities, modernize outdated amenities, enhance its overall quality and promote premium customer experiences at both the casino and the hotel. In the long-term, this will increase the hotel’s occupancy rates and encourage spending at the casino and the hotel.”
The company remains committed to pursuing its redevelopment strategy despite financial pressures. IEC paid HK$180.7 million in gaming tax and licensing fees during the reporting year, compared with just HK$17.8 million in FY24. Group sales costs rose by 41% to HK$112.2 million.
Net current assets at year-end were reported at HK$524.6 million, a sharp increase from HK$16.2 million the previous year. Liabilities also improved, falling to HK$238.3 million from HK$600.6 million a year earlier. No final dividend was declared for FY25.
To support the large-scale redevelopment, IEC stated it continues to explore financing strategies, including potential bank loans, debt issuance, or equity fundraising.
While losses remain significant, the company maintains a positive long-term view, highlighting the surge in gaming revenue and the anticipated benefits of its integrated resort investment. “The company is optimistic that the expansion of the casino’s gaming capacity will improve the future revenue of the casino,” IEC said in its statement, as reported by Inside Asian Gaming.
