GGRAsia – CY Foundation fiscal 1H loss widens

CY Foundation fiscal 1H loss widens

Nov 30, 2015 Newsdesk Industry Talk, Latest News, Macau, Top of the deck

CY Foundation Group Ltd – an investor in services to the Macau gaming industry – reported a loss of HKD140.3 million (US$18.1 million) for the six months ended September 30. The group’s loss widened from the HKD11.9 million recorded a year earlier.

Revenue generated from the electronic gaming business decreased 11.1 percent in year-on-year terms, to HKD57.0 million, the Hong Kong-listed firm stated in a Friday filing.

CY Foundation is the parent company of Macau-based casino services provider CY Management Ltd. The latter firm provides management services to three casinos in Macau and information technology services to two other casinos in the city, the parent company said in its annual report in June. CY Foundation is also engaged in the manufacturing of packaging products for luxury goods.

The loss in the electronic gaming business segment in the fiscal first half was HKD96.5 million compared to HKD4.7 million a year earlier, according to the firm. The results included an impairment of intangible assets of HKD34.8 million and an impairment of goodwill of HKD48.2 million due to the decline in the Macau gaming market, the firm said.

CY Foundation stated it continued “to place effort on expanding its electronic gaming business operation amid overall decline in the Macau gaming revenues”. But the firm said it expected that “the effects of the anti-corruption campaign and the economic downturn in the People’s Republic of China will continue to impact the performance of the electronic gaming business in Macau”.

Macau casino gross gaming revenue (GGR) has fallen for 17 consecutive months in year-on-year terms since June last year. GGR is down 35.5 percent in the first 10 months of 2015 compared to the prior-year period.

The group stated it was also “exploring new business opportunities in other Asian countries” to diversify its risk profile.

CY Foundation’s board decided not to declare the payment of an interim dividend for the period.

The firm earlier this year announced its intention to change the English name of the company to Success Dragon International Holdings Ltd. The name change was approved in October.

“At present, the company is carrying out… necessary filing procedures to effect the change of company name,” it stated in Friday’s filing, adding it would later announce the effective date for the change.