Macau casino investor Success Universe Group Ltd. is not feeling successful in the first half of the year as reflected by its widening net loss and slumping revenues.
Success Universe’s net loss ballooned to HK$12.6 million (US$ 1.62 million) during the January to June 2016 period, a 563 percent surge from the HK$ 1.9-million loss recorded in the prior-year period, the firm reported in a filing to the HongKong Stock Exchange.
On the other hand, Success Universe’s revenue plummeted by 41.7 percent to HK$ 347.1 million (US$ 44.75 million) for the six months to June 30 this year compared to the HK$595.6 million for the same period of 2015.
Gross profit of Success Universe plunged by approximately 50 percent to HK$12.5 million (US$ 1.61 million) from HK$25.3 million (US$ 3.26 million) in 2015.
Yeung Hoi Sing, chairman of Success Universe, attributed the firm’s lackluster business performance to the decrease of the Group’s shared profit of the associates relating to Ponte 16 as a result of the continuous downside of Macau gaming sector; The significant decrease in operating revenue and increase in loss of the Group’s lottery business resulting from the voluntary and temporary suspension of its paperless lottery sales agency services; And the impairment loss on the carrying value of the trademark of the Group’s travel business.
“Going forward, the Group will stay cautious and prudent towards the formulation and implementation of corporate strategies, whereas constantly identifies suitable business opportunities to achieve a long term growth,” Sing said in a statement. “The Group believes that such strategies will lead it to a stronger foothold in the gaming, entertainment and tourist-related industries in the Asia-Pacific region.”
Success Universe is a joint venture partner – alongside a unit of gaming operator SJM Holdings Ltd – in casino hotel Ponte 16, located on the Macau peninsula. The casino at Ponte 16 had 109 gaming tables as of June 30. It consists of 94 mass gaming tables, nine high-limit tables and six VIP tables, according to the latest filing.
According to the firm, its shared profit in Ponte 16 slid by 31 percent to HKD10.6 million (US$ 1.37 million) in the first half of 2016. The property’s adjusted earnings before interest, taxation, depreciation and amortization fell by 7.8 percent year-on-year to HKD143.2 million (US$ 18.46 million).
The firm’s lottery business remains temporarily closed as a result of China’s on-going crackdown against unauthorized sales of lottery through internet.
For the six months ended 30 June 2016, revenue of the lottery business amounted to approximately HK$3.0 million (US$ 386,764), representing a decrease of approximately 96 percent compared to HK$70.1 million (US$ 9.04 million) for the last corresponding period.