GGRAsia – Kingston interim casino rev, gaming EBITDA negative

Kingston interim casino rev, gaming EBITDA negative

Nov 24, 2022 Newsdesk Latest News, Macau, Top of the deck

Gaming revenue at Kingston Financial Group Ltd, the operator of two so-called satellite casinos in Macau, was negative by just above HKD20.9 million (US$2.7 million) for the six months ended September 30, according to a Thursday filing. That compared with a positive gaming-revenue figure of nearly HKD18.8 million in the prior-year period.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) in the gaming segment for the April to September 2022 were negative by HKD43.4 million. It was slightly wider than the HKD42.8-million EBITDA loss recorded a year earlier.

Kingston Financial has interests in the Macau satellite casinos Casa Real, on the city’s peninsula, and Grandview (pictured) in Taipa. The venues are to continue offering gaming until at least December 31, coinciding with the extended gaming rights up to that date of the licence provider, SJM Holdings Ltd.

The firm noted in a Thursday filing to the Hong Kong Stock Exchange that the decrease in number of visitor arrivals to Macau “had a negative impact” on the group’s gaming business.

“Gaming and hotel revenue of the group dropped apparently as patrons refrained from making physical visits [to the Macau properties] due to public health concerns” related to the Covid-19 pandemic, stated Kingston Financial.

It added: “It is uncertain when the negative impact on Macau’s tourism and gaming industry will end and when it will fully recover to pre-pandemic levels.”

As of September 30, the two casinos linked to Kingston Financial had an aggregate 69 tables in their respective mass market halls and 262 slot machines. The group did not have any tables in the VIP segment, as its VIP rooms “were closed in February 2022”.

Gaming commissions paid as an incentive to attract customers during the six months to September 30 decreased by approximately 81 percent year-on-year, to about HKD4.5 million. That was because “chip turnover decreased due to the closure of the VIP rooms in February 2022 and the decrease in number of visitor arrivals in Macau” during the reporting period, said the firm.

Group-wide profit dipped 26.4 percent year-on-year for the six months to September 30, to HKD1.8 million. The decrease was “primarily attributable to the impairment losses on advances to customers in margin financing,” stated the company.

Overall group turnover for the interim period rose by 3.0 percent year-on-year, to just above HKD940.2 million.

Kingston Financial provides also financial services, including securities brokerage, underwriting and placements; margin and initial public offering financing; corporate finance advisory services; futures brokerage; and asset management services.

In late October, the controlling shareholder of Kingston Financial proposed to take the firm private.