Asian VIP gaming investor Imperial Pacific International Holdings narrowed its losses in 2015 and plans to spend 2016 getting ready to open its new casino on Saipan.
The Hong Kong-listed Imperial Pacific reported a net loss of HKD 84.4m (US $10.9m) last year, a vast improvement over the HKD 1.56b loss in 2014.
It should be noted that 2014’s numbers suffered from a HKD 1.3b impairment charge related to the company’s unprofitable profit sharing deal with Macau casino junket operator Heng Sheng Group, while 2015’s numbers enjoyed a HKD 221m gain from the premature end to that Heng Sheng relationship.
Imperial Pacific’s 2015 revenue improved 67% to HKD 932m, thanks in part to the July opening of the company’s new temporary casino on Saipan. The temporary facility boasts 12 VIP gaming tables, 34 mass tables and 106 electronic gaming machines.
The casino officially began VIP operations on Nov. 1 and has recorded VIP turnover of approximately $7.3b in the ensuing three months. Imperial Pacific says it is “more than happy” with the temporary casino’s performance given Asia’s “anemic” VIP gaming environment.
Imperial Pacific says it has received all the necessary permits to begin construction of its permanent Saipan gaming venue, the Grand Mariana Casino and Hotel Resort in Garapan (artist’s impression pictured).
Imperial Pacific has already invested HKD 465m ($60m) on design, consulting, construction material and labor related to the Grand Mariana project. The company had originally vowed to spend up to $7.1b building the property, but that was before China’s VIPs developed anemia, so who knows what the final plans or budget resemble.
The company plans to downsize or even sell off its food processing and trading business on the Chinese mainland in order to focus on its gaming operations.
The Grand Mariana was originally scheduled to open its casino doors this December while the accompanying hotel would open at the end of Q1 2017. Imperial Pacific offered no indication it was planning to shift those timelines.