GGRAsia – Success Universe expects three-fold jump in 1H profit

Success Universe expects three-fold jump in 1H profit

Aug 13, 2019 Newsdesk Latest News, Macau, Top of the deck

Macau casino investor Success Universe Group Ltd says it expects to record an increase of “around two to three times” in profit for the six months ended June 30, compared to the first half of 2018. The company told the Hong Kong Stock Exchange on Monday that it based that expectation on the draft unaudited consolidated management accounts for the group.

The company made a profit of about HKD14.2 million (US$1.8 million) in the first six months of 2018.

“Notwithstanding the decrease in fair value gain on investment properties of the group, the increase in the unaudited consolidated profit of the group for the six months ended June 30, 2019 was mainly attributable to the increase in the group’s share of profit of the associates relating to Ponte 16, the flagship investment project of the group,” Success Universe stated in its Monday filing.

The Ponte 16 casino hotel (pictured) is located on the Macau peninsula and is operated under a joint venture between Success Universe and Macau casino operator SJM Holdings Ltd. The Ponte 16 casino had – as of end-2018 – 97 gaming tables for the mass market, seven high-limit gaming tables and five VIP gaming tables in December.

Success Universe told the stock exchange on Monday that it expected to issue its results for the first half of 2019 later this month.

GGRAsia reported last month that Japanese company Current Corp planned to advance with a proposal for a casino resort in the Japanese city of Nagasaki, a project in partnership with Success Universe and Hong Kong-listed Get Nice Holdings Ltd – formerly an investor in what was the Grand Waldo casino hotel in Macau, run under a Galaxy Entertainment Group Ltd gaming licence.

In Macau, Success Universe hopes its construction plan for an extension of the waterfront complex Ponte 16 can be approved by the Macau government “within this year”, the firm told GGRAsia in June. The extension, referred to by Succes Universe as the “third phase”, will be on land immediately to the south of the current Ponte 16 property, near the historic Pier 16 building in the Inner Harbour district.

Success Universe reported a profit of nearly HKD54.5 million for full-year 2018, having made a loss the year before. The positive result last year was due mainly to its share of profit flowing from the Ponte 16 casino hotel, the company said in March in a filing to the Hong Kong Stock Exchange.