Imperial Pacific sees 2018 loss on lower revenue, higher debt

Imperial Pacific International, which operates Saipan’s only casino, said it expects to post a loss for 2018 due to falling revenue and rising trade receivables.

The company said in a statement to the Hong Kong Stock Exchange that auditors are still finalizing the accounts and results will be published before the end of the month.

For 2017, the group posted an almost 40 percent drop in profit to HK637.5 million due to rising levels of bad debts from its high-roller clients. The decline came despite a three-fold increase in revenue to $13.2 billion.

The group has been extending credit directly to clients in the absence of any meaningful junket operations on the island.

After a promising start, 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 the initial phase of the casino, which includes hotel facilities.