GGRAsia – Success Universe loss triples in 2016 as revenue tumbles

Success Universe loss triples in 2016 as revenue tumbles

Mar 31, 2017 Newsdesk Latest News, Macau, Top of the deck

Macau casino investor Success Universe Group Ltd posted a net loss of nearly HKD31.0 million (US$4.0 million) for full 2016, a sharp increase of 364.4 percent from the HKD6.7-million loss recorded in 2015

The company recorded revenue of approximately HKD573.1 million for the 12 months to December 31, down 43.3 percent from a year earlier, the firm said in a filing to the Hong Kong Stock Exchange on Thursday.

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 HKD17.5 million in 2016, down 40.3 percent from a year earlier. The property’s adjusted earnings before interest, taxation, depreciation and amortisation fell by 8.7 percent year-on-year to HKD277.4 million.

As at December 31, the casino at Ponte 16 had 109 gaming tables, consisting of 96 mass gaming tables, seven high-limit tables and six VIP tables, according to the latest filing.

Success Universe said the decline in its results was attributable to: a reduction in shared profit relating to Ponte 16; a significant decrease in operating revenue and increase in loss at its lottery business in mainland China; and an impairment loss on the carrying value of the trademark of the group’s travel business.

The firm said it continued in 2016 to temporarily – and voluntarily – suspend its paperless lottery sales agency services in mainland China. That was following the Chinese government announcing in 2015 a suspension of what it was described at the time as “unauthorised online lottery sales services”. The move has been outlined by the mainland authorities as temporary and designed to allow for a revamp of the regulations on such business.

“The group will closely monitor the development and wait for further announcement on the resumption date of paperless lottery sales from the Chinese government authorities,” Success Universe stated.

The firm did not declare a dividend.

“The group is aware of the challenges that lie ahead and remains cautious of the increasing economic uncertainties of the global economy, but capturing the right opportunities is the key to expand and grow its business,” said Sonny Yeung Hoi Sing, chairman of Success Universe, in a statement accompanying the results.

He added: “We believe that such strategies will lead [the firm] to a stronger foothold in the gaming, entertainment and tourist-related industries in the Asia-Pacific region.”

In a February interview with GGRAsia, Success Universe’s executive director and deputy chairman, Hoffman Ma Ho Man, said the firm was yet to submit to the Macau government a new construction plan for the third phase of Ponte 16.