CNMI

IPI loses executives, sheds workers

Imperial Pacific International (IPI) continues to hit the headlines for all the wrong reasons, losing more senior executives and coming under fire for sacking workers, after having argued labor shortages were a key reason for delays in finishing its Saipan resort.

The Hong Kong-listed company in September was given a three-year extension to complete the project after missing another deadline in August. It has cited difficulties in sourcing skilled labor on the island, as well as issues with one of its main contractors, which was accused of hiring illegal Chinese workers.

However, last month, IPI fired 80 construction workers brought in under temporary visas.

The workers said the termination had been a shock as their visas and contracts had earlier been extended to Jan. 30th next year.

The employees met with local government officials to plead their case, with some politicians questioning IPI’s ability to meet even the extended deadline.

“With all of these local and H-2B workers being laid off, are we really supposed to believe that IPI will complete the hotel casino construction project within 2.5 years?, opposition lawmaker Edwin Propst was cited as saying by the Saipan Tribune.

The company also announced the departure Chairman and CEO Harry Cheang in October after less than a year on the job. He was the fourth key executive to depart this year, after former CEO Mark Brown left in January, Executive Director Cai Lingli departed in August, as did Chairman Marco Teng.

The company provided no reason for Cheang’s departure and as of the time of writing no replacement has been named.

Since a promising start after winning the license in 2014, things have gone from bad to worse for the company. It had been operating out of a temporary facility in an upmarket mall, generating eye popping levels of monthly rolling volume from just a handful of tables.

According to its web site, Phase 1 was to be a rare combination of luxury integrated casinos, five-star luxury accommodation, and a wide range of exclusive dining and entertainment facilities, including more than 200 gaming tables and over 350 slot machines. The 14-storey hotel building will offer more than 340 opulent hotel suites.

An even more expansive Phase 2 was to feature 20 six-star themed hotels, a onekilometer-long duty-free shopping boulevard featuring top international designer labels, and the themed water park.

However, only the casino portion and a cocktail lounge have so far opened, with the key hotel section of the glitzy white and gold resort still be be finished.

IPI has stopped providing monthly rolling figures and profit in the first half plunged 91.3 percent to HK$79 million (US$10.1 million), due to a drop in total revenue, but also higher trade receivables. The company has struggled to collect debt from its VIP customers to whom it had been extending direct credit, with a particular concentration on just a handful of high rollers.

It has been in talks for some time to obtain permission for more junkets to operate on the island.

The Commonwealth Casino Commission has now approved four. They are Bula Mula LLC, Hengqin Guiji LLC, High Tides (CNMI) LLC, and Stellar Paradise CNMI LLC, joining Big Bang Entertainment which was previously approved.

Ainsworth says performance improving after 2018 profit drop

Gaming manufacturer Ainsworth Game Technology Ltd profit after tax fell 15.8 percent in the 2018 financial year, due to a decline in Australia, Asia and Europe sales.

Profit after tax for the year was recorded at A$31.9 million (US$23.3 million), down from A$37.8 million in FY17. Ainsworth noted however that it saw much improved second-half performance, with profit before tax (PBT) up 68 percent compared to the first half of the year. The second half results were slightly ahead of Ainsworth’s upgraded guidance, said chief executive officer Danny Gladstone.

“Our performance continues to show signs of improvement and is a direct result of the strategies implemented to expand our international footprint, invest in technology to enhance our product suite, and build our participation fleet to improve the quality of our earnings.”

Crown profit shines on VIP play

Crown Resorts reported an almost 13 percent increase in normalized profit after tax for the year ending June 30th, fuelled by a 54.4 percent surge in VIP program play turnover. Normalized profit was $386.8 million ($286.7 million).

“Crown’s full year result reflects a solid performance from our Melbourne operation and continued subdued trading in Perth,” Crown Executive Chairman John Alexander said in a statement to the Australian Stock Exchange.

“Total normalized revenue across Crown’s Australian resorts increased by 10.6 percent on the prior comparable period. Main floor gaming revenue increased by 1.5 percent, with modest growth in Melbourne offset by softness in Perth.

VIP program play turnover in Australia of $51.5 billion was a pleasing outcome, particularly at Crown Melbourne (up 73.9 percent), given the difficult trading conditions in the pcp.”