GGRAsia – Summit Ascent US$1.5mln profit in 2022, mulls partners

Summit Ascent US$1.5mln profit in 2022, mulls partners

Mar 30, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck

Hong Kong-listed Summit Ascent Holdings, an investor in the Tigre de Cristal casino resort (pictured), near the Russian Pacific port of Vladivostok, reported a profit attributable to its shareholders of HKD11.8 million (US$1.5 million) for 2022. That compared to a nearly HKD230.0-million loss in 2021, according to a Wednesday filing.

The company stated that in 2021 it had recognised an impairment loss of HKD136.9 million on “property, operating right and equipment, “whereas no such impairment loss was recorded for the year 2022”.

The improved performance was on revenue from hotel and gaming operations that rose by 40.2 percent year-on-year, to HKD372.3 million.

No dividend was paid or proposed for ordinary shareholders for the year to December 31, 2022. Summit Ascent is a subsidiary of Hong Kong-listed LET Group Holdings Ltd, formerly Suncity Group Holdings Ltd.

Summit Ascent reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HKD105.1 million in 2022, compared to HKD40.9 million in 2021.

“Robust financial results aside, the Russia-Ukraine conflict continues to bring challenges to the group operationally,” said Summit Ascent, adding that international flights from “key international destinations” had not resumed as of the date of the report.

The Phase II development of Tigre de Cristal – originally planned nearly to double the complex’s accommodation capacity and non-gaming amenities – remains “suspended to minimise the group’s capital expenditures and commitments”.

The firm said the “increased geopolitical risks induced by the Russia-Ukraine conflict have weighed adversely on global economic conditions”, which “makes it exceptionally challenging to determine the return on investment” of Tigre de Cristal’s expansion.

It added: “The company has been exploring alternative options, as well as potentially looking for strategic local partners who might be able to bring in value in terms of operating the integrated resort in the Russian Far East.”

The improvement in group-wide revenue for full-year 2022 was “predominantly attributable to the local Russian mass table and electronic gaming businesses,” stated Summit Ascent.

Net revenue from gaming operations grew by 37.3 percent year-on-year, to HKD340.9 million.

Summit Ascent recorded zero revenue from rolling chip business in 2022, a segment that “used to primarily target foreign players,” stated the firm.

But the numbers showed mass-market table revenue rose 48.5 percent year-on-year, to HKD168.7 million, while electronic gaming revenue went up 27.8 percent, to HKD172.2 million.

“Overall, we are pleased to witness a full recovery in the local mass table and electronic gaming businesses in 2022,” stated the company in the earnings filing.