.1 billion investment may no longer be realistic
Casino operator Imperial Pacific International Holdings Ltd., whose revenues have begun to stabilize since the company ended its unprofitable business relationship with Macau junket operator Heng Sheng Group, is looking ahead to the opening this year of its $7.1 billion permanent casino resort on the island of Saipan.
Hong Kong-listed IP reported a net loss of HKD 84.4 million (US $10.9 million) last year, a considerable improvement over the HKD 1.56 billion loss in 2014. The website CalvinAyre.com attributed the loss to a HKD 1.3 billion impairment charge related to IP’s profit-sharing deal with Heng Sheng Group. In 2015, by contrast, after that relationship was severed, IP saw a HKD 221 million gain.
Last year, revenues jumped 67 percent to HKD 932 million, due in part to the July opening of the temporary casino on Saipan. The temporary facility generated MOP11.52 billion (US$1.44 billion) in VIP rolling chips in December, the company reported in a filing to the Hong Kong Stock Exchange.
The casino, which also serves as a personnel training center for 600 employees, has 106 electronic games, 34 mass tables and 12 VIP tables. It is run by Hong Kong-listed Best Sunshine International, a subsidiary of IP, which is developing an integrated resort in Garapan, the center of tourism on Saipan. The Grand Mariana Casino and Hotel Resort should be complete by December of this year, according to reports.
The company originally had a budget of $7.1 billion for the project, but that investment may be pared back due to the decline in VIP play in the area. Despite that possible drawback, the casino, which officially launched VIP operations in November 1, has recorded VIP turnover of approximately $7.3 billion since. IP reported it is “more than happy” with the numbers in light of Asia’s “anemic” VIP gaming climate.
