Technical support issues
Imperial Pacific International Holdings, a Hong Kong-based casino resort operator on Saipan Island, posted a report reflecting the company's net loss. The figures show that the company witnessed a total of HK$2.08 billion in trade receivables damage in the first half of this year. This compares with a loss of HK$847 million in the previous period. Imperial Pacific announced that HK$1.27 billion of the total aforementioned amounts was impairment of its accounts receivable from its teenage customers.
Imperial Pacific's shame
The company's net income for the first quarter of the year ended June 30 was HK$912.0 million, up 8.9% from the previous period. The company's gross gaming revenue (GGR) for the first half of the year was reported at HK$7.27 billion, while its unaudited VIP table games increased 55.4% year-over-year to HK$196.3 billion. In August, the CEO of Imperial Pacific explained that the company suffered losses following increased damage to its accounts receivable. The company recorded an annual increase of 207.7% in operating costs of up to HK$2.92 billion.
In a filing on Friday, Imperial Pacific explained that customers' outstanding invoices are independent of the junket market and are within acceptable limits following the decline of the Macau gambling industry. Credit rating agency Moody's Investors Service downgraded Imperial Pacific, which it predicted would likely not narrow its losses, but vice versa.
Company investment and planning
The company entered the U.S. market by investing heavily in gambling facilities on Saipan Island, and initially Imperial Pacific was granted permission to operate a temporary casino called 'Best Sunshine Live' before a major casino project opened under the name Imperial Pacific Resort until July 6. The company's next financial report represents the money earned at the new Imperial Pacific Resort. It is worth mentioning that Imperial Pacific aims to stabilize its net profit after losses suffered from the opening of the new casino.
In addition to Saipan Island Casino Ventures, it also invested in Macau Junket operator Hung Shing Group, which turned out to be unprofitable for Imperial Pacific, ending its loan and revenue agreement with Hung Shing Group .
Wednesday, September 6, 2023
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