IEC Reports 146% Revenue Increase Despite Rising Expense

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International Entertainment Corp (IEC), the operator of the New Coast Hotel and Casino in Manila, reported a substantial increase in revenue for the fiscal year ending June 30, 2025. The IEC revenue increase reached 146% despite ongoing redevelopment and rising operational expenses.

IEC’s total revenue rose 146% to HK$566.2 million (US$72.8 million), largely driven by a 200% increase in gaming income, which accounted for over 90% of the group’s sales. In contrast, hotel revenue declined by 6%, due in part to temporary closures related to renovation activities within the property.

Key takeaways:

  • IEC revenue increase of 146% driven by gaming growth
  • Redevelopment includes a $1–1.2 billion upgrade to transform the resort
  • Company explores financing options amid rising expenses and initial losses

Redevelopment Drives Costs Amid Expansion Plans

The company’s net loss widened to HK$282.1 million (US$36.3 million), more than doubling compared to the previous year. This increase was attributed to higher staffing, marketing and depreciation costs. 

Notably, marketing and promotional expenses surged by over 1,600% to HK$74.5 million, reflecting efforts to boost visibility following the granting of IEC’s provisional gaming license in May 2024. This license transferred full control of casino operations from the Philippine Amusement and Gaming Corporation (PAGCOR) to IEC.

One-time write-offs related to IEC’s extensive redevelopment program also contributed to the net losses. The company is undertaking a multi-phase renovation project valued between US$1 billion and US$1.2 billion, aimed at transforming New Coast into an integrated resort. The first phase, initiated in February 2025, focuses on upgrading hotel amenities and modernizing the gaming floor.

The second phase, contracted to Kimberland Construction for PHP1.05 billion (US$18.6 million), will expand gaming capacity by increasing gaming tables from 80 to over 110 and slot machines from 500 to more than 920 units. The initial phase contract alone is valued at PHP1.47 billion (US$25.5 million), with upgrades intended to enhance both the customer experience and revenue potential.

IEC Revenue Increase Highlights Long-Term Outlook

IEC’s operational expenses also include a significant increase in gaming taxes and licensing fees, which increased to HK$180.7 million from HK$17.8 million in the prior fiscal year. 

Despite the current losses, the company’s board expressed optimism about the long-term prospects, noting that the IEC revenue increase reflects strong momentum in gaming income and supports expectations that expanded facilities will boost future occupancy and gaming revenue.

To support its redevelopment efforts, IEC is exploring various financing options, including loans, new debt issuances and potential equity fundraising.

“The company is optimistic that the expansion of the casino’s gaming capacity will improve the future revenue of the casino,” IEC stated in its recent annual results announcement, highlighting confidence in the Manila integrated resort’s growth potential.