Rich Goldman Holdings Ltd, formerly known as Neptune Group Ltd, an investor in Macau casino junket business, says its net profit for the six months to December 31 fell by 72 percent year-on-year to approximately HKD7.26 million (US$927,601).
The company reported revenue of nearly HKD64.24 million for the period, down 52.7 percent from the prior-year period, according to a filing to the Hong Kong Stock Exchange on Tuesday.
The firm’s gaming and entertainment segment was the main contributor to the half-year revenue, amounting to HKD47.59 million, down nearly 65 percent from a year earlier. But it still accounted for about 74 percent of total revenue in the six months to December 31, 2017, according to the filing.
The company had flagged earlier this month it expected a decline in profit, mainly due to “the cessation of profit stream” from two VIP room operations in the previous financial year. The firm had said two of its partners had their junket agreements terminated by Macau-based casino operator Sands China Ltd in respectively May and July 2017.
Subsequent to those terminations, Rich Goldman has had only a single junket partner in the Macau market, operating eight tables at Grand Lisboa.
The company however said the decline in revenue in its gaming segment was offset by the collection of a “considerable amount” of its trade receivables that had been “long overdue” from some of its business partners.
“Our debts over 365 days have been decreased to approximately HKD47 million when compared to HKD357 million at 30 June 2017,” said Rich Goldman in Tuesday’s filing.
It added: “We have a positive view on the Macau gaming industry given the numerous growth drivers in the nearly future. It remained one of our important businesses if the recent encouraging growth can persist.”
Rich Goldman has been diversifying its business away from gaming. The firm started in the prior financial year a money lending business and also a hotel operating business.
“Positive results have been achieved in these two new segments during the six months ended 31 December 2017,” said the firm.
Rich Goldman said in October it had sharply narrowed its net loss for financial year ended June 30, 2017. Such loss was HKD10.15 million, compared to HKD202.11 million in the previous financial year.
Feb 16, 2018Due to the Chinese New Year holiday, the GGRAsia team will be off between February 16 and 19. We will be back on February 20. We wish all our readers a prosperous Year of the Dog!
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”A challenge to Macau's economic model could potentially emerge over the longer term should China revise existing criminal laws that prohibit most forms of gambling in the mainland... Even in such a scenario, Fitch would expect this to occur gradually”
Fitch Ratings Inc