Ponte 16 adjusted EBITDA up by 51 pct in 1H

Aug 28, 2014 Newsdesk Latest News, Macau, Top of the deck  

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Macau casino hotel Ponte 16 (pictured) posted an increase of 51 percent in adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the first half of 2014, Hong Kong-listed Success Universe Group Ltd announced on Thursday.

Adjusted EBITDA of the property increased to HKD260.0 million (US$33.5 million) from HKD172.5 million one year earlier.

“This was mainly attributable to the steady growth in the number of visitors to Macau as well as the increase in gaming revenue from the mass market,” Success Universe said in its interim results announcement.

The company is a joint venture partner with a unit of SJM Holdings Ltd in the casino hotel, located on the Macau peninsula.

Shared profit relating to Ponte 16 and attributable to the associates for the first half of 2014 was HKD56.3 million, up by 366 percent in year-on-year terms, Success Universe said.

As of June 30, the casino at Ponte 16 had 109 gaming tables, of which 84 were mass gaming tables, 9 were “high-limit” and 16 were VIP tables.

A planned third phase to the resort is still under review by the Macau government, Success Universe said. The extension would have a gross floor area of approximately 40,000 square metres (430,556 square feet). It would include a shopping arcade, an entertainment and recreation complex and dining outlets as well as gaming zones.

Success Universe recorded an overall turnover of HKD730.6 million for the six months ended June 30, a 12-percent year-on-year decrease.

Profit dropped by one third to HKD47.7 million, affected by the non-recurrence of the HKD83.4-million gain from derecognition of a long-term payable following the exercise of an option by Maruhan Corp recorded in the first half of 2013.

At the time, Japanese pachinko hall operator Maruhan exercised a 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 was recorded as the second largest shareholder of Success Universe, with a stake of 19.42 percent as of end-December 2013.

Success Universe is active in other gaming-related segments beyond casinos. Up until July, it had a 55-percent interest in casino cruise ship M.V. Macau Success. It has now been sold.

For the six months ended June 30, turnover of the cruise ship business was HKD44.5 million, representing an increase of 6 percent in year-on-year terms. The business recorded a profit of HKD0.9 million as compared to HKD2.1 million one year earlier.

The firm is also involved in offering lottery sales agency services in mainland China.

Success Universe did not declare an interim dividend.

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