GGRAsia – Frontier Capital posts wider loss as casino starts ops

Frontier Capital posts wider loss as casino starts ops

Dec 18, 2019 Newsdesk Latest News, Philippines, Top of the deck

Australia-listed casino investor Frontier Capital Group Ltd posted a net loss of AUD4.61 million (US$3.16 million) for the first half of 2019, compared to a net loss of AUD0.50 million in the prior-year period.

The company recorded revenue of AUD855,000 for the period, down 40.9 percent from a year earlier; while it costs rose by 15.9 percent year-on-year, to AUD2.17 million. The firm’s financial expenses in the six months to June 30 stood at AUD2.71 million, compared to AUD101,000 in the prior-year period.

“The increase in the net loss from the previous corresponding period takes into account the changes in the gaming casino business in Philippines,” said the company in a filing on Tuesday.

Frontier Capital said in July it had resumed gaming operations following a soft opening of its casino resort in June. The FortuneGate Casino had an official opening ceremony on July 28, according to the company.

Frontier Capital has controlled since February 2016 the Hotel Stotsenberg (pictured) and the casino facility inside, located at the Clark Freeport Zone, in the Philippines. The operations of the gaming venue – previously known as Casablanca Casino – had been suspended for a number of years as the company had not met the regulator’s compliance requirements, according to previous filings.

The company had been required by the Philippine casino regulator, the Philippine Amusement and Gaming Corp (Pagcor), to settle an escrow account in the amount of PHP225 million (US$4.44 million at current exchange rates). In an April filing the firm said it was “in full compliance” with requirements for reopening its casino. Trading in the firm’s shares is currently suspended. The hotel has been operating throughout the period.

According to a previous filing by Frontier Capital, FortuneGate Holdings Philippines Inc has been appointed to manage FortuneGate Casino. Frontier Capital did not disclose in Tuesday’s filing the number of gaming tables and electronic gaming machines at the gaming venue.

FortuneGate Holdings has been described by Frontier Capital as a Philippine registered company that invests in casino resort projects, as well as a provider of casino operations and management services, with a “strong support in VIP markets, with a focus on the Philippine market.”