Annual Report 2011/12 - International Entertainment Corporation

Chairman’s StatementInternational Entertainment CorporationDr. Cheng Kar Shun ChairmanDear Fellow Shareholders,I am pleased to report on the financial performance of the International Entertainment Corporation (the “Company”) and itssubsidiaries (together, the “Group”) for the year ended 31 March 2012.Since the acquisition of the hotel and leasing businesses in the Philippines in October 2007, the Group continues togenerate profits for the past five financial years. Although the global economy remains uncertain, the Group’s revenue for theyear improved as compared to last year, thanks largely to an increase in room occupancy and average room rate and theimprovement of gaming revenue of the casino operated by Philippine Amusement and Gaming Corporation. The revenue ofthe Group for the year was approximately HK$432.5 million, representing an increase of approximately 5.6%, as comparedto last year’s profit of approximately HK$409.7 million.The hotel operations contributed approximately 32.7% of the Group’s revenue during the period under review, while theleasing of properties contributed approximately 67.3% of the Group’s revenue this year. Last year, the hotel operations andleasing of properties contributed approximately 32.8% and 67.2% respectively of the total revenue of the Group.As the hotel and leasing operations are located in the Philippines, the economic turbulence in the United States of Americaand Europe might not directly affect the Group’s operations. However, the inflation in the Philippines would result in theGroup implementing cost-saving measures, improving the hardware of the properties and boosting sales and marketing tomeet the challenge. During the year, the Group purchased new slot machines for the leasing of properties for casino andancillary leisure and entertainment operations and redecorated some hotel rooms.The financial position of the Group remained strong. The net assets attributable to the shareholders of the Company (the“Shareholders”) as at 31 March 2012 was approximately HK$1,790.4 million. The bank balances and cash of the Group asat 31 March 2012 was approximately HK$1,300.2 million.International Entertainment Corporation - Annual Report 2011/12 3