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.
Jan 20, 2021Moody’s Investors Service Inc says it expects the ratio of adjusted debt to earnings before interest, taxation, depreciation and amortisation (EBITDA) of Macau casino operators Melco Resorts and...
Jan 20, 2021
"The increased focus we can now bring to our gaming and amusement business [after a spin-off of the firm's cash-handling product business] will bring us closer to the customer as we align our offerings more directly with their needs"
Global president of casino equipment supplier SuzoHapp