Content Writer: Janice Chew • Monday, 26/08/2026 - 19:39:02 - PM
Hong Kong-listed International Entertainment Corporation (IEC) has issued a profit warning for FY26, expecting a loss of around HK$500 million (US$64 million) for the year ended 30 June 2026. This compares with a HK$282.1 million loss a year earlier.
Non-cash charge drives the larger loss
Around HK$425 million of the expected loss comes from a non-cash fair value adjustment related to HK$1.6 billion in convertible notes issued to Philippine gaming group DigiPlus Interactive.
IEC said that without this accounting impact, its underlying loss would actually have narrowed year-on-year. The company also reported notable gross profit growth, supported by higher gaming revenue from its land-based casino operations and gaming platform business.
Higher marketing and promotional spending at LaVie Resort & Casino in Manila also contributed to expenses as IEC works to strengthen the property's competitiveness.
DigiPlus relationship becomes increasingly important
The convertible notes are particularly significant because DigiPlus could eventually convert them into a 53.89% controlling stake in IEC.
The two groups are also deepening their operational relationship, with DigiPlus subsidiary TGXI supporting IEC's expansion into online gaming in the Philippines.
Insights
IEC's FY26 headline loss looks severe, but the large non-cash charge masks a more encouraging operational picture.
The bigger story may be the transformation taking place around LaVie: casino expansion, heavier marketing, online gaming and a potentially controlling DigiPlus investment are increasingly coming together under one strategy.
IEC is expected to publish its full FY26 results on 28 August 2026, which should provide a clearer view of whether stronger gaming revenue is translating into sustainable operating improvement.