Macau casino junket operator Iao Kun Group Holding Company Limited (IKGH) has narrowed its net loss to $23.8m in the second quarter from $56.7m in Q2 2014. The firm recorded a net loss of $6.7m for the six months ending June 30th, down from $53.5m over the same period last year.
Iao Kun said that the lower net loss was attributable to the change in contingent consideration related to the acquisitions of King’s Gaming, Bao Li Gaming and Oriental VIP Room; lower administrative expenses for Q2 due to the costs incurred in application to list on the Hong Kong Stock Exchange in 2014; as well as lower commission to junket agents as a result of significantly lower rolling chip turnover.
Rolling chip turnover for Q2 was down 63% year-on-year to $1.7b, while the H1 figure was down 58% to $3.9b.
IKGH revenue for the second quarter, fell 56% decrease to $21.9m, in line with the overall decline in gaming revenue in Macau.
“The overall VIP market in Macau continues to be affected by the ongoing macro environment, and as such we are continuing to prudently manage our capital,” said IKGH Chairman Lam Man Pou.
Aside from the five gaming rooms it’s promoting in Macau at Galaxy Entertainment’s StarWorld Hotel, Sands Cotai Central, Melco Crown Entertainment’s City of Dreams Macau, and SJM’s Casino Le Royal Arc, IKGH also started trial operations at Australian casinos Crown Perth and Crown Melbourne in May, in a bid to diversify sources of revenue and to expand its presence internationally.
“We continue to explore overseas alternatives, such as our recent acquisition of Australian profit interests, to expand our overall VIP presence and provide additional diversification to our current sources of revenue,” added Lam. “We remain committed to finding these additional opportunities and ultimately generating long-term value for our shareholders.”