Macau gaming services and hotel company China Star Entertainment Ltd has warned investors it expects to record a “significant increase” in net loss for the first half of 2017. In the equivalent period last year, the firm recorded a profit of approximately HKD39.1 million (US$5 million), it said in a filing to the Hong Kong Stock Exchange.
The company owns and operates a casino hotel called Lan Kwai Fong (pictured) on the Macau peninsula. China Star runs gaming there under the licence of Macau casino operator SJM Holdings Ltd.
China Star said the expected increase in loss was mainly attributable to: “loss on early redemption on promissory note of approximately HKD60 million; recognition of unrealised loss of approximately HKD57 million arising on change in fair value of financial assets classified as held for trading investments; and increase in finance costs by the amount of approximately HKD16 million from the last corresponding period.”
The company said the widening loss would in likelihood be “partially offset by the recognition of gain on fair value change of investment properties of approximately HKD1 million during this period,” as compared to a loss of nearly HKD25.4 million in the last corresponding period.
China Star announced in late June that it agreed to sell the Lan Kwai Fong casino hotel to Hong Kong-listed Paradise Entertainment Ltd, for a total purchase price of HKD2.38 billion.
"We remain fully committed to continue supporting IGT’s long-term development"
Chief executive of De Agostini, majority shareholder of lottery and gaming supplier IGT