Emperor Entertainment Hotel Ltd has reported profit attributable to owners of the company fell 5.7 percent year-on-year in the six months ending September 30, 2016, hit by declining revenue and challenging market conditions.
Revenue was down 10.2 percent to HK$784.5 million ($101.1 million) in 16H1, compared to HK$873.4 million in 15H1.
EBITDA was HK$180 million in the six months ending Sep 30, down from HK$274.1 million in the prior year period.
“The group’s performance was impacted by challenging conditions in Macau’s gaming market,” said the company in a filing to the Hong Kong Stock Exchange.
“As compared to the same period last year, the implication of both exchange loss and decrease in the valuation of the hotel properties was greatly diminished.”
As a result, net profit attributable to owners of the company was HK$105.1 million, which the company said was “only” a decrease of 5.7 per cent year-on-year from HK$111.5 million.
“Despite of these challenging conditions, Macau’s gross gaming revenue has shown signs of bottoming out since the second half of 2016. The group remains committed to driving operational excellence through optimising gaming mix, maximising table utilisation and improving operating efficiency, thereby reinforcing its competitive edges to capture full potential in the fascinating city,” added the group in its filing.
The company operates two hotels in Macau, the Grand Emperor Hotel, and Inn Hotel Macau. The Grand Emperor Hotel is the group’s flagship property with six gaming floors covering over 130,000 square feet, offering slot machines, gaming tables and VIP rooms.