Success Universe Group Ltd, an investor in Macau casino hotel Ponte 16 (pictured), said the property recorded negative adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HKD242.9 million (US$31.2 million) for full-year 2020. That compares with a positive figure of HKD377.5 million in 2019, said the company in a Tuesday filing.
The company posted a net loss of just above HKD141.9 million in 2020, versus a profit of nearly HKD74.2 million in the previous year.
Revenue for the period was approximately HKD363.8 million, down 68.3 percent from 2019, said the company in a filing to the Hong Kong Stock Exchange.
Success Universe is a joint venture partner, with a unit of casino concessionaire SJM Holdings Ltd, in casino hotel Ponte 16, at Macau’s Inner Harbour district.
The yearly loss was mainly attributable to the group’s share of a “substantial loss” relating to the Ponte 16 complex, “as a result of the outbreak of Covid-19 since early 2020.” The group’s shared loss relating to Ponte 16 was about HKD145.7 million in full-2020, compared with a profit of HKD116.8 million a year ago.
The group said additionally that the pandemic and associated travel restrictions had “inevitably affected” Ponte 16’s gaming and hotel occupancy performance. As at December 31, the casino at Ponte 16 had 88 live-dealer gaming tables in operation, consisting of 82 mass-market tables and 6 high-limit tables. The casino had no VIP tables in operation at the end of last year.
“To alleviate the financial pressure brought by Covid-19, Ponte 16 has been carrying out a series of cost containment measures, streamlining operational efficiency with flexible manpower arrangement,” stated Success Universe.
The casino investor said it provided a loan amounting to HKD98.0 million to Pier 16 – Property Development Ltd, in proportion to its interest in the latter company. Success Universe controls 49 percent of Pier 16 – Property Development, the entity that operates the Ponte 16 casino hotel.
Success Universe has provided an additional loan of HKD19.6 million to Pier 16 – Property Development in March 2021, according to Tuesday’s filing.
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