Suncity Group Holdings didn’t have a great 2018, despite an increase in revenue. The Asia-based gaming and travel investor saw its revenue increase year-on-year by 45.5% to $118.1 million, but lost in the end due to an exchange loss of $26.96 million associated with convertible bonds and changes in the fair value of derivative instruments with $128 million. Because of these factors, the company ended up in the red, reporting a loss of $217.5 million compared to the profit of $29.35 million seen a year earlier.
The growth at the company was attributed to an increase in sales of some of its property and increased sales performance of some of its travel products and services, according to a filing with the Hong Kong Stock Exchange (HKSE) from Friday. The boost was also due to an increase of consultancy services on hotels and integrated resorts.
Suncity is controlled by Alvin Chau Cheok Wa, who also controls Macau junket investor Suncity Group. That entity is one of the largest investors in junket room operations in the city, according to some analysts, but Suncity Group Holdings doesn’t include any Macau junket profit streams as part of its assets.
Suncity Group Holdings purchased the entire equity stake of Star Admiral, Ltd. That entity owns around 34% of a casino being built in Hoi An in Vietnam, which will reportedly have over 140 gaming tables, more than 300 slot machines and 1,000 hotel rooms. Those amenities will all be ready when the first phase of the venue’s construction is finished later this year.
In its statement to the HKSE, Suncity said, “The group will continue to diversify its businesses to tourism-related real estate in Asian countries and grasp opportunities on the provision for hotel and integrated resort general consultancy services. A memorandum of understanding with Paradise Co Ltd was signed earlier on the possible co-operation in Paradise Casino Busan.”
It added, “The group aims to build an integrated tourism-related platform with equity investments in integrated resorts as well as a tourism-related service provider to integrated resorts within the Asian region.”
The company had previously reported a net loss of $24.5 billion for the first half of last year. It didn’t offer a final dividend payout for 2017 and announced that it won’t be available for last year, either.
