GGRAsia – Rich Goldman in the red as gaming biz depressed

Rich Goldman in the red as gaming biz depressed

Oct 06, 2020 Newsdesk Latest News, Macau, Top of the deck

Hong Kong-listed junket promoter Rich Goldman Holdings Ltd swung to a net loss for the financial year ended June 30, due to what it said was a “significant reduction” in revenue from the “gaming and entertainment business” segment.

Rich Goldman reported a net loss attributable to shareholders of HKD85.7 million (US$11.1 million) for the 12 months to June 30, compared to a net profit of nearly HKD42.6 million in the previous financial year. The firm said it was principally engaged in junket promotion business; money lending; hotel operations; and property leasing.

The company reported revenue of just above HKD53.9 million for the period, down 55.0 percent from the previous financial year.

Revenue from the gaming and entertainment business – generated from commissions on rolling turnover – stood at HKD21.8 million, down 70.6 percent year-on-year. It still accounted for about 40.4 percent of group-wide revenue.

“The decrease was mainly attributable to a decrease in the number of visitors to Macau, the slowing down of China’s economy, and the cessation of the cooperation with a junket operator, which had decided not to seek an extension of the collaboration contract with the casino operator of Grand Lisboa upon expiry in March 2020,” said Rich Goldman regarding the decline in the gaming segment.

The firm noted that the end of the group’s gaming and entertainment business in Macau and a “delay” of commencement of operations in the Philippines had caused a “significant reduction” in terms of revenue from the gaming segment in the last two financial years.

But the firm said it continued its efforts to diversify the group’s business amid the Covid-19 pandemic, including to “expedite” the commencement of gaming operations in the Philippines.

Rich Goldman said in an April filing that it would – via a subsidiary – form a shared venture to introduce players to the VIP room at Solaire Resort and Casino in the Philippine capital, Manila. A junket representative connected to the other partner in the planned joint venture runs the high roller room at Solaire, a property operated by Bloomberry Resorts and Hotels Inc.

The gaming operation in the Philippines was however delayed by the Covid-19 pandemic and the “lockdown measures” in the Philippines, Rich Goldman said in its latest annual results filing. “As at the date of this announcement, the group is in the process of finalising the business setup,” it added.