$IKGH - Iao Kun Group Holding Company Limited Announces Strategic Macau Restructuring Initiatives
Iao Kun Group Holding Co. Ltd. (NASDAQ:IKGH)
Today : Friday 2 September 2016
Closes VIP Gaming Room at Sands Cotai Central, Expects to Generate Annual Savings of US$750,000
Iao Kun Group Holding Company Limited (“IKGH”) (NASDAQ:IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced that it is undertaking a comprehensive strategic review of its VIP gaming room operations in Macau due to the ongoing challenging VIP gaming environment and to enhance its operating performance.
As an initial cost-cutting measure, IKGH has closed its VIP gaming room at the Sands Cotai Central Casino in Macau, effective August 31, and terminated its agreement with King’s Gaming Promotion Ltd. relating to that facility, as the current Rolling Chip Turnover volume does not warrant the operation of five VIP gaming rooms. IKGH believes the closure of the facility will generate annual overall savings of approximately US$750,000.
In addition, upon the completion of its strategic review, IKGH may further close an additional 1-2 VIP gaming rooms in order to further optimize its operating earnings. IKGH will provide details with respect to any additional expense reductions in due course.
“Given the lack of recovery in the VIP market in Macau and our expectations that this will continue for the foreseeable future, we are currently reviewing our overall operations in Macau in order to ensure their sustainability,” said Mr. Lam Man Pou, Chairman of IKGH. “We expect to take further prudent actions that we believe will be accretive to our earnings per share and to ensure the preservation of our capital as we continue to seek to generate long-term value for our shareholders.”
