IEC Issues Fifth Profit Warning as Losses Triple Amid Casino Renovations
International Entertainment Corp. (IEC) has issued a profit warning, predicting a significant loss for its latest fiscal year. The company's shares are trading at a high price-to-sales ratio, raising questions about its valuation in the stock market today. Despite these challenges, IEC's future in the Philippine gaming market remains promising.
IEC's revenue more than doubled in the first half of 2025, but its loss nearly tripled. The company has issued its fifth profit warning in two years, this time predicting a loss before taxes of HK$260 million ($33.4 million) or more. This expected loss is due to higher expenses for general and administrative spending, marketing campaigns, and a write-off related to an ongoing casino renovation in the stock market.
IEC's shares are currently trading at a high price-to-sales ratio of 4.33, which could indicate that the stock is slightly overvalued. The company's investment in rejuvenating the New Coast Hotel property is a major reason for its recent losses. IEC agreed to purchase and manage a Pagcor casino attached to its New Coast Hotel property in Manila, with plans to spend between $1 billion and $1.2 billion on renovations in the gaming industry.
The Philippine gaming market has strong regional potential, which could bode well for IEC's future as it moves into casino ownership. IEC competes with major players such as Bloomberry Resorts Corp., Belle Corp., and Universal Entertainment in the Philippine casino industry.
Pagcor's plan to sell all of its 43 casinos, aiming to generate at least 50 billion ($870 million) pesos in proceeds, could present new opportunities for IEC. Despite recent setbacks, IEC's strong regional market potential and strategic investments position the company for long-term growth in the Philippine gaming industry.
