Iao Kun seeks overseas expansion as Macau revenue slumps

Iao Kun Group Holding said it’s looking for further opportunities for overseas expansion after reporting its Q3 revenue halved as VIP revenue from Macau shrivelled.

The Hong Kong-listed company reported a net loss for the quarter of $0.3 million, or a $0.01 loss per share, compared to a net loss of $12.7 million, or a $0.20 loss per share in Q3 2014. On a non-GAAP basis, net income for the quarter was $0.04 per share, compared to a $0.02 loss per share in the prior year period. Capital IQ provided a Street estimate of $0.03 earnings per share.

Total revenues were $22.4 million, down from $51.9 million reported for the same period last year and lower than the $31 million Street estimate.

Iao Kun reaffirmed its 2015 rolling chip turnover guidance for its five existing VIP rooms in Macau at $6.0 billion to $7.0 billion.

“We continue to carefully navigate the VIP market in Macau and manage our capital as the ongoing macro environment continues to be challenging,” said chairman Lam Man Pou. “With the macro environment in Macau still being difficult, we continue to be on the lookout for additional VIP opportunities in overseas markets to complement our Australian interests and to further diversify our current sources of revenue. We remain committed to finding appropriate opportunities to expand our presence and ultimately generate long-term value for our shareholders.”

Earlier this year, the company reached an accord to run VIP room operations in the Crown Perth and Crown Melbourne casinos.