International Entertainment Corporation (IEC) latest financial report shows that its gaming business in the Philippines has increased by 200% year-on-year, becoming the main source of revenue for the company. Despite a $36.3 million loss due to the renovation of the New Coast Hotel in Manila, the strong performance of the gaming business drove the company's total revenue up by 146% to $72.8 million.
IEC Financial Performance and Revenue Structure
For the fiscal year ending June 30, 2025, IEC recorded a loss of $36.3 million, mainly due to the renovation of the New Coast Hotel and related asset write-offs. However, the company's total revenue increased by 146% year-on-year to $72.8 million, of which gaming revenue was $65.5 million, accounting for 90.1% of total revenue.
Hotel business revenue temporarily decreased by 6% due to partial room renovations, but is expected to grow again after the renovation is completed. This change in revenue structure reflects the company's strategic focus on gaming business.
Value of Philippine Gaming License and Policy Background
A key factor in IEC's performance growth is the acquisition of a temporary gaming license in the Philippines. Previously, the company had to share gaming revenue with the Philippine Amusement and Gaming Corporation (PAGCOR), but with the temporary license, it now fully controls casino operations without needing to share revenue.
Currently, only about 10 integrated resort gaming licenses are issued in the Philippines, with policies favoring long-term stable operations. IEC's temporary gaming license is valid until 2033, with the possibility of converting to a formal license and renewal, providing the company with long-term operational stability.
Resort Expansion and Capacity Enhancement Plan
IEC announced an investment of $1-1.2 billion to upgrade the New Coast Hotel into a full-category integrated resort. The plan has been contracted with the construction party, and the renovation has officially started. After the expansion, the number of casino tables will increase from 80 to 110, and the number of slot machines from 500 to 920, nearly doubling the reception capacity.
The company's management stated that the expansion plan aims to seize the opportunity of Southeast Asia's tourism recovery. In 2025, Southeast Asia is expected to attract more than 120 million international tourists, with tourism revenue possibly exceeding $350 billion, and Manila, as a regional transportation hub, will benefit from this trend.
Financing Progress and Industry Attractiveness
IEC stated that the $1.2 billion investment plan will be realized through various means such as bank loans, debt financing, and equity financing. The 200% growth in the company's gaming business provides strong support for financing.
The Philippine gaming industry has policy certainty and growth potential, with total industry revenue breaking $8 billion in 2024, an 18% increase year-on-year. Integrated resorts operated by foreign capital contributed 60% of the revenue, and with the recovery of core tourist markets such as China and South Korea, the industry growth rate is expected to reach 20% in 2025.
Prospects and Market Opportunities of the Philippine Gaming Industry
IEC's performance and investment plans reflect the overall development trend of the Philippine gaming industry. The scarcity of gaming licenses, the recovery of the tourism market, and policy stability collectively drive the country to become a new growth point for the gaming industry in Southeast Asia.
Recently, several foreign enterprises are negotiating gaming project cooperation in the Philippines, indicating international capital's confidence in the market. Industry analysts believe that the Philippine gaming industry may enter a new development stage, with infrastructure upgrades and diversification of customer sources being key growth drivers.
