Imperial Pacific International said that through a subsidiary has terminated a loan and profit transfer agreement with Macau casino junket Heng Sheng Group.
Excel Earth Limited, a wholly owned subsidiary of the company, ended the agreement because “the downturn of Macau gaming business is expected to continue.”
“The Junket shall forthwith return the unsecured, interest-free loan in the amount of HK$18 million to Excel Earth.”
According to the statistics from Macau Gaming Inspection and Coordination Bureau, revenue generated from VIP Baccarat for the first, second and third quarter of 2015 amounted to approximately MOP37.6 billion, MOP31.5 billion and MOP28.9 billion, respectively.
Imperial Pacific, which in July launched a temporary casino on Saipan, also cited its reasons for ending the deal as being unprofitable.
The company said based on the unaudited financials of the junket for the nine months ended 30 September, the expected profit stream for 2015 is approximately 2.91 percent of the loan, compared with 59.65 percent in 2014.