GGRAsia – Success Universe says profit might drop by up to 35 pct

Success Universe says profit might drop by up to 35 pct

Aug 15, 2014 Newsdesk Latest News, Macau, Top of the deck

Shares in Macau casino investor Success Universe Group Ltd fell over 3 percent on Friday after the firm issued a profit warning the day before. The company said that it expects consolidated profit after tax to drop between 25 percent and 35 percent for the six months to June 30, 2014.

The company posted a profit of HKD68.1 million (US$8.8 million) for the first six months of 2013.

Success Universe is a joint venture partner with a unit of SJM Holdings Ltd in Macau casino hotel Ponte 16.

“The estimated decrease … was mainly attributable to the non-recurrence of a gain recognised in the first half of 2013 of approximately HKD83.4 million on derecognition of a long term payable of the group pursuant to the exercise of option by Maruhan Corp,” Success Universe said in a filing on Thursday.

During the first half of 2013, Japanese pachinko hall operator Maruhan exercised its contractual right to sell its 10.2 percent interest in World Fortune Ltd, an indirect non-wholly owned subsidiary of Success Universe, together with the shareholder’s loans provided by Maruhan to World Fortune. Maruhan is the second largest shareholder of Success Universe, with a stake of 19.42 percent as of end-December 2013.

In Thursday’s filing, Success Universe said shared profit relating to Ponte 16 casino hotel for the first six months of 2014 “is expected to increase significantly” from a year earlier.

It also said that the company’s lottery business “achieved encouraging results” and that it expects a profit for the first six months as compared to a loss a year before.