Iao Kun Group Holding Company Limited announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company reported total revenues of USD 10,578,785 against USD 21,869,783 a year ago. Operating loss attributable to ordinary shareholders before change in fair value of contingent consideration was USD 104,358,860 against USD 24,048,917 a year ago. Net loss attributable to ordinary shareholders was USD 104,358,860 or USD 1.65 per basic and diluted share against USD 23,804,788 or USD 0.38 per basic and diluted share a year ago. The increase in net loss for the three months ended June 30, 2016 as compared to the three months ended June 30, 2015 was primarily a result of recognizing a one-time USD 97.3 million impairment of intangible assets in the second quarter of 2016. Apart from the one-time impairment of intangible assets, the net loss was primarily due to a significant decrease in revenues as a result of lower Rolling Chip Turnover and lower win rate, partially offset by lower commissions to junket agents for the three months ended June 30, 2016 as a result of the lower Rolling Chip Turnover compared to the prior-year period. Non-GAAP loss (before amortization of intangible assets and change in fair value of contingent consideration) was USD 3,014,712 or USD 0.05 per diluted share against USD 2,202,098 or USD 0.03 per diluted share a year ago.

For the six months, the company reported total revenues of USD 28,500,970 against USD 63,571,015 a year ago. Operating loss attributable to ordinary shareholders before change in fair value of contingent consideration was USD 107,854,413 against USD 20,048,116 a year ago. Net loss attributable to ordinary shareholders was USD 107,854,413 or USD 1.71 per basic and diluted share against USD 6,722,302 or USD 0.11 per basic and diluted share a year ago. Net cash provided by operating activities was USD 1,421,000 against USD 17,402,000 a year ago. Non-GAAP loss (before amortization of intangible assets and change in fair value of contingent consideration) was USD 2,438,527 or USD 0.04 per diluted share against non-GAAP income (before amortization of intangible assets and change in fair value of contingent consideration) of USD 5,889,381 or USD 0.10 per diluted share a year ago.

Given the recent closure of three of its VIP rooms, the company is now projecting 2016 Rolling Chip Turnover guidance in Macau of between USD 2.5 billion and USD 3.0 billion.

The company recognized a one-time USD 97.3 million impairment of intangible assets in the second quarter of 2016, while during the second quarter of 2015, IKGH incurred a one-time USD 17.8 million impairment of goodwill.