Saipan casino operator Imperial Pacific International Holdings (IPI) saw its profits fall more than one-third in 2017 despite revenue more than doubling year-on-year.
On Thursday, IPI informed the Hong Kong Stock Exchange that its net revenue hit HK$8.15b (US$1.04b) in calendar 2017, just over twice the sum generated in 2016. Gross profit more than doubled to just under HK$7b but profit fell 32% to HK$637m.
IPIs profits were undone by the companys rising bad debt provisions, reflecting IPIs risky strategy of avoiding junket operators and offering credit directly to VIP gamblers. Total trade receivables outstanding VIP gambling debts stood at HK$8.5b at the end of 2017, up from HK$5.3b in 2016. Of this sum, 8% was owed by IPIs single bigg…
Read the full article at: https://calvinayre.com/2018/03/29/casino/imperial-pacific-writes-off-half-billion-gambling-debts/