GGRAsia – Success Dragon yearly loss widens to nearly US$30 mln

Success Dragon yearly loss widens to nearly US$30 mln

May 18, 2016 Newsdesk Latest News, Macau, Rest of Asia

Gaming services firm Success Dragon International Holdings Ltd reported a net loss of HKD231.5 million (US$29.8 million) for the fiscal year ended March 31, 2016. The group’s loss widened from the HKD47.3 million recorded in the previous year.

The company reported revenue of approximately HKD153.7 million in the 12 months to March 31, down by 14.6 percent from the previous year. The revenue decline was “due mainly to a drop in the performance in the outsourced business process management and the decline in revenue and margin for the packaging products business,” the firm said in a filing on Monday.

Success Dragon said the widening loss in the fiscal year to March 31, 2016 was due to impairment losses of: goodwill amounting to HKD48.2 million; intangible assets amounting to HKD34.8 million; and of property, plant and equipment amounting to HKD15.3 million.

The impairment loss on intangible assets was in relation to the outsourced business process management in Macau, said the company. “Due to changes in market conditions, the group has revised its cash flow forecasts for this business segment in Macau,” said Success Dragon.

Revenue for provision of services on management of electronic gaming equipment in Macau decreased by 9.8 percent year-on-year to approximately HKD119.8 million. The segment recorded a loss of about HKD113.9 million in the fiscal year to March 31, compared to a loss of HKD21.6 million in the year before.

The company also reported an increase in operating, administrative and other expenses in the latest fiscal year, to approximately HKD174.4 million, compared to HKD92 million in the previous year. It said the increase in expenses was also related to higher costs to expand the business to Vietnam.

Success Dragon has entered into an agreement for the provision of outsourced management services for greyhound racing in Vietnam.

The company also announced in March it had agreed to acquire a stake in One Opera Danang Hotel in Vietnam. It followed the announcement of two agreements to manage electronic gaming machines at gaming clubs in two five-star hotels in Vietnam, including at the One Opera Hotel.