Hong Kong-listed Palasino Holdings Ltd, which runs gaming and hospitality complexes in Europe, reported profit attributable to shareholders of nearly HKD15.4 million (about US$2.0 million) for the 12 months to March 31, up 80.2 percent from a year earlier.
Palasino Holdings runs three land-based casinos in the Czech Republic and hotels in Germany and Austria. It listed in Hong Kong in March last year as a spin-off from Hong Kong-listed property developer Far East Consortium International Ltd.
The company declared a final dividend of HKD0.029 per share for the 12 months to March 31, to be paid on September 19. The dividend amounts to nearly HKD23.5 million, according to a Thursday filing.
Palasino Holdings reported annual revenue of HKD568.1 million, flat compared to the prior financial year. Gaming revenue for the reporting reached HKD408.8 million, a 1.6-percent increase year-on-year.
The group’s adjusted property earnings before interest, taxation, depreciation, and amortisation (EBITDA) stood at HKD75.4 million, down 29.1 percent from the prior financial year.
The decline in adjusted property EBITDA “was mainly due” to a decrease in net foreign exchange gains of about HKD10 million, “in conjunction with the increase in gaming tax by approximately HKD7 million” due to higher applicable tax rates, as well as a hike in hotel and catering operating expenses of “circa HKD5 million,” stated the firm.
Other factors that impacted the group’s EBITDA included higher utilities expenses; an increase in audit and professional fees of about HKD2 million; and a growth of approximately HKD2 million in advertising and promotional expenses.
In Thursday’s filing the company said it was preparing – via the conversion of a shopping mall – for the opening of a fourth casino during the current financial year, to be located in the city of Mikulov, in Czech Republic.
Palasino Holdings also said it has signed an agreement to dispose of 70 percent of its interests in an online gaming business, “with the aim to leverage on a partner to explore new opportunities in the online gaming sector”.
The company announced plans to revamp its existing properties, after implementing “interim measures to increase the gaming floor size and the number of slot machines”.
“This includes the overhaul of the gaming area facilities, back-of-house areas, guest rooms and other hospitality offerings, especially at – but not limited to – Palasino Savannah Resort and Palasino Wullowitz,” stated the firm.
“These efforts aim to maintain and further consolidate the group’s market presence in the gaming industry in the Czech Republic and central Europe,” it added. “The number of slot machines will also continue to grow to further enhance the group’s gaming revenue stream.”
