GGRAsia – Grand Emperor op expects sharp decrease in 1H profit

Grand Emperor op expects sharp decrease in 1H profit

Nov 02, 2015 Newsdesk Latest News, Macau, Top of the deck

Emperor Entertainment Hotel Ltd, owner and operator of Macau casino property Grand Emperor Hotel (pictured), said it expects to record a “significant decrease” in consolidated net profit for the six months ended September 30, 2015, compared to the prior-year period.

The decline is attributable to “a net loss on the hotel property valuation due to the downturn of the Macau property market,” the company said in a filing to the Hong Kong Stock Exchange on Friday. The net loss “is a non-cash item and will not have a direct impact on the operation of the group,” the firm added.

Emperor Entertainment additionally said it expects to report a “moderate decline” in revenue for the period, as well as an “exchange loss on offshore traded renminibi deposits … due to abrupt devaluation of renminbi in August”.

Hong Kong-listed Emperor Entertainment reported a net profit of HKD263.72 million (US$34 million) for the fiscal first half of 2014, according to previous filings.

The casino at the Grand Emperor Hotel operates under a licence from Macau gaming firm SJM Holdings Ltd. The 307-room hotel had 67 gaming tables and 200 slot machine seats on the main casino concourse and a self-managed VIP room with 10 tables, according to its latest annual report published in June.