Iao Kun Group Holding Company Limited, best known for operating VIP rooms in various gambling venues in Macau, has just announced its financial performance for Q3 and the first nine months of fiscal year 2014. The company posted a rise in rolling chip turnover and a 15% drop in overall revenue.
On Monday, the company’s share price on NASDAQ dropped by 12.7%, reaching $1.72 per unit by the end of the day.
Iao Kun reported that company’s net loss amounted to $12.2 million, i.e. $0.20 per share for the three-month period between July 1 and September 30. In comparison, net income totaled $6.9 million. In other words, the company earned $0.11 per fully diluted share.
It posted a 5% rise in rolling chip turnover to $4.3 billion for this year’s Q3, compared to the $4.1 billion generated this time a year earlier.
Non-GAAP loss amounted to $1.1 million, i.e. $0.02 per fully diluted share, for the three-month period between July 1 and September 30. This time last year, the company posted non-GAAP earnings of $10.1 million. In other words, it received $0.16 per fully diluted share.
Iao Kun, however, reported a 15% decrease in overall revenue, adding up to $51.9 million. This was mainly contributed to the low win rate, barely reaching 2.53% for Q3 of this fiscal year, as compared to last year’s 3.18%, the not particularly impressive rise in VIP baccarat turnover, as well as in the economic situation in the Chinese mainland. Due to this, fewer VIP players travel to Macau’s junkets, as it was reported back in November.
Iao Kun’s rolling chip turnover for this year’s three quarters between January 1 and September 30 amounted to $13.8 billion, posting a 9% rise, as compared to last year’s $12.7 billion.
Net loss for the nine-month period added up to $65.8 million, i.e. $1.09 per share. By comparison, company’s net income reached $10.9 million, which was $0.22 per fully diluted share, for the first nine months of 2013.
Non-GAAP earnings totaled $9.2 million, i.e. $0.15 per fully diluted share, for this year’s three quarters between January 1 and September 30. This time last year, company’s non-GAAP earnings reached the amount of $34.5 million, i.e. $0.69 per fully diluted share. This considerable decrease was contributed to the purchase of King’s Gaming, Bao Li Gaming, and Oriental VIP Room.
Man Pou Lam, Chairman of Iao Kun, stated that they will keep on working with the Hong Kong Stock Exchange. What is more, they will focus their attention on expanding their “presence and market share in the Macau VIP gaming market”.
