Imperial Pacific Swings to Loss in 2018

Imperial Pacific International posted a significant loss for the year ended December 31, 2018, blaming the results on falling revenue, rising impairment losses of trade receivables, and increased expenses in the year.

The loss amounted to HK$2.97 billion (about US$378 million), down from a profit of HK$638 million (about US$83 million) in the prior year.

Imperial Pacific said this was due mainly to a drop in revenue, which decreased more than 58%. The casino’s VIP business, long known as the company’s bread and butter, saw VIP gaming revenue fall 60%, while VIP rolling chip volume fell 67%.

Revenue from mass gaming operations also took a hit in the year, falling 31%.

Imperial Pacific also said its casino was adversely affected by Typhoon Yutu, which closed Saipan’s international airport for almost an entire month in October 2018.

The multi-billion dollar resort has been plagued by problems ranging from an illegal worker scandal to repeated construction delays due to weather and labor-related issues. The Commonwealth Lottery Commission granted an extension in September last year until February 2021 to complete construction of the initial phase of the casino, which includes hotel facilities. (AGB)