GGRAsia – Tigre 2021 loss up 470pct, Summit notes sanctions on Russia

Tigre 2021 loss up 470pct, Summit notes sanctions on Russia

Mar 16, 2022 Newsdesk Latest News, Rest of Asia, Top of the deck

The Hong Kong-listed chief backer of the Tigre de Cristal casino resort says it has been “closely monitoring the market conditions and the impact” on business arising from the “Russia-Ukraine conflict since late February 2022”. The property operates in the Primorye Integrated Entertainment Zone, near the Russian Pacific port of Vladivostok, in the Russian Far East.

Summit Ascent Holdings Ltd added that its scrutiny included, but was “not limited to, the fluctuations” in the value of the Russian currency, the rouble, and relevant “interest rates”. But the firm added that the resort had been “self-sustaining without any bank borrowings”.

The firm further noted: “The board will continue to assess the impact of economic sanctions against the Russian Federation on the financial position and operations of the group, and will make further announcements if and when it is necessary.”

The company said it expected to widen its yearly loss by 472.8 percent for the period to December 31, to “not less than” HKD273.8 million (US$35.0 million), compared to a loss of HKD47.8 million in 2020.

The firm said its anticipated 2021 loss was despite yearly adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) going from a negative HKD14.7 million in 2020, to positive EBITDA of approximately HKD40.9 million in 2021.

Summit Ascent said the expected 2021 loss was mainly via fair-value losses on derivative financial instruments of approximately HKD149.1 million; and an impairment loss recognised on “property, operating right and equipment” of approximately HKD136.9 million.

At the time of its interim report issued in September, Summit Ascent had a 77.5 percent interest in Tigre de Cristal’s gaming licence holder, Oriental Regent Ltd. As of the same report, another Hong Kong-listed firm – Suncity Group Holdings Ltd – had a 69.66 percent interest in Summit Ascent.

In December, Suncity Group Holdings said its then-controlling shareholder, detained Macau junket boss Alvin Chau Cheok Wa, could lose his controlling stake in that firm due to an unpaid loan to a group of lenders.