Iao Kun Group rolling chip turnover decreases 61 percent in 2015

Macau junket investor Iao Kun Group has announced rolling chip turnover for the year ended Dec. 31, 2015 fell 61 percent, to US$6.4 billion, compared to $16.6 billion in 2014, according to a recent filing to the Hong Kong Stock Exchange.

Net income was $5.1 million, or $0.08 net income per share for 2015, compared to a net loss of 60.1 million in 2014.

In regards to its fourth quarter results, the company recorded revenue of $19 million for the three months ended Dec. 31, 2015, a 64 percent decrease from 2014. According to the filing, this was caused by a decrease of players for VIP baccarat, China’s economic downturn and ongoing anti-corruption campaign , as well as the continued tightening of government policies in mainland China, such as restrictions on credit card usage.

Rolling chip turnover for the three months was $1.2 billion, a decrease of 57 percent compared to 2014.

Net income was $12.2 million, compared to $5.7 million for the same period in 2014.

According IKGH, the improved net income for the fourth quarter of 2014 was primarily a result of the change in contingent consideration, as well as lower commissions to junket agents in the quarter.

Chairman of IKGH, Lam Man Pou noted the difficult year past, and says the company will look at new opportunities overseas.

“With a difficult 2015 behind us and with the expectation that 2016 will also be a challenging year for VIP gaming in Macau, we continue to prudently manage our capital to ensure we will be appropriately positioned when the market turns around,” said Lam.

“At the same time, we continue to source additional VIP opportunities in overseas markets to allow us to further diversify our revenue streams. We remain committed to finding suitable opportunities to expand our presence and ultimately generating long-term value for our shareholders.”