Macau satellite casino promoter Emperor Entertainment Hotel Ltd reported an annual loss attributable to its owners of nearly HKD188.9 million (US$24.1 million) for the 12 months to March 31. The figure compared with a net profit of HKD60.9 million in the prior financial year.
Hotel and gaming revenue for the latest reporting period rose by 6.0 percent year-on-year, to HKD784.8 million, stated the company in a Friday filing to the Hong Kong Stock Exchange.
Emperor Entertainment said the annual loss was due to “a fair value loss on investment properties of HKD371.7 million” during the reporting period.
The firm runs casino venue the Grand Emperor Hotel (pictured in a file photo) in downtown Macau. The casino is promoted under the licence of gaming concessionaire SJM Holdings Ltd.
Gaming revenue rose by 10.1 percent year-on-year, to HKD505.6 million in the 12 months to March 31.
Emperor Entertainment’s adjusted segmental earnings before interest, taxation, depreciation, and amortisation were just above HKD208.1 million in the latest financial year, up 18.9 percent from a year earlier.
Emperor Entertainment operates a second hotel in Macau, called Inn Hotel, but that property does not have gaming facilities. The group also has hotel operations and serviced-apartment business in Hong Kong.
Earlier this month, Emperor Entertainment confirmed it had received a notice from the SJM group in relation to the latter’s decision to end by year-end the operation of the gaming area at Grand Emperor Hotel.
Operations of satellite casinos in Macau – venues that work under the licence of an existing concessionaire – are set to cease by the end of this year.
Macau currently has 11 satellite casinos operating under the 10-year gaming concessions that began in January 2023. Nine of the 11 are run via SJM Holdings’ licence; one under Galaxy Entertainment Ltd’s permit; and one via Melco Resorts & Entertainment Ltd’s gaming rights.
Under the city’s revamped gaming regulatory framework – coinciding with the current concessions of the six Macau operators – from next year, the third-party investors in satellite casinos would only be permitted to earn a “management fee” via a “management company”.
On June 9, SJM Holdings announced plans to close seven of its satellite casinos by year-end, including Casino Emperor Palace. Only Ponte 16 and L’Arc Macau are expected to continue operations beyond 2025.
To that end, the casino firm announced plans to acquire the respective properties where those two casinos are located, meaning they would become self-promoted casinos. The move still requires approval from the Macau government.
