GGRAsia – Casino investor Success Universe warns of higher losses

Casino investor Success Universe warns of higher losses

Jan 20, 2017 Newsdesk Latest News, Macau, Top of the deck

Success Universe Group Ltd, an investor in Macau casino hotel Ponte 16 (pictured), said on Thursday that it expects to record a higher consolidated loss after tax for the year ended December 31, 2016. The company reported a consolidated loss after tax of approximately HKD11.6 million (US$1.5 million) for full-year 2015.

“The group is expected to record an increase of around one to three times in the consolidated loss after tax for the year ended 31 December 2016,” Success Universe said in a filing to the Hong Kong Stock Exchange.

The firm additionally said that based on the unaudited management accounts for the first 11 months of 2016, it recorded “a significant increase” of the consolidated loss after tax compared to the corresponding period of 2015.

Success Universe is a joint venture partner with a unit of SJM Holdings Ltd in casino hotel Ponte 16, on the Macau peninsula. The firm also has a sports lottery sales agency network covering a few provinces in mainland China.

In Thursday’s filing, Success Universe said that the expected increase in the consolidated loss was mainly attributable to: a reduction in shared profit relating to casino hotel Ponte 16; a significant decrease in operating revenue and increase in loss at its lottery business in mainland China; and an impairment loss on the carrying value of the trademark of the group’s travel business.

The Hong Kong-listed company posted a net loss of HKD12.6 million for the six months to June 30, nearly a sixfold increase from the HKD1.9-million loss recorded in the prior-year period.