GGRAsia – Success Universe slips into red in first half

Success Universe slips into red in first half

Aug 31, 2015 Newsdesk Latest News, Macau, Top of the deck

Macau casino investor Success Universe Group Ltd posted a net loss of HKD1.9 million (US$245,161) for the six months to June 30, compared to a profit of HKD47.7 million in the prior-year period.

Turnover from continuing operations declined by 13 percent year-on-year to approximately HKD595.6 million, the firm said in a filing to the Hong Kong Stock Exchange on Friday.

Success Universe is a joint venture partner – alongside a unit of gaming operator SJM Holdings Ltd – in casino hotel Ponte 16 (pictured), located on the Macau Peninsula. The company’s shared profit relating to Ponte 16 amounted to about HKD15.3 million in the first half of 2015, down 73 percent from a year earlier. The property’s adjusted earnings before interest, taxation, depreciation and amortisation fell by 40 percent year-on-year to HKD155.4 million.

As at June 30, the casino at Ponte 16 had 108 gaming tables, consisting of 92 mass gaming tables, nine high-limit tables and seven VIP tables, according to the latest filing.

Success Universe said the decline in results was attributable to the contraction of the Macau gaming sector and the “voluntary and temporary suspension of the paperless lottery sales agency services” in mainland China.

On April 3, eight Chinese central government agencies issued a joint public announcement ordering the suspension of online sales of lottery tickets. There is still no official word on when the temporary suspension of online lottery sales will be lifted.

Prior to that suspension, turnover of the company’s lottery business had risen 4 percent year-on-year to approximately HKD70.1 million, Success Universe said. The firm however reported a loss of HKD5.1 million for the lottery segment in the six months to June 30, compared to a profit of HKD7.8 million a year earlier.

“The group will closely monitor the development and wait for [a] further announcement on the resumption date of paperless lottery sales from the Chinese government authorities,” the company said.

In Friday’s filing, Success Universe said it had started to see signs of stabilisation in the gaming business in Macau in the beginning of the second half of 2015.

“With China’s supportive policies on Macau’s industry fundamentals, the group believes that the structural changes towards mass market gaming industry and the change in the composition of tourists will sustain [Macau] in a longer term,” the firm said.

“Ponte 16 will continue to implement effective strategies to capture such market trend[s], including the introduction of live multi game terminals to provide new gaming excitement to players,” it added.