Hong Kong-listed Summit Ascent Holdings, the operator of Tigre de Cristal in Russia posted a loss for H1, though the company saw a significant improvement in mass table revenue.
The group posted a total loss of $10.3 million, narrowing from $33 million in the prior year period. Though total income attributable to owners of the company edged into the black at HK$2.6 million in 18H1, compared to a loss of HK$5.4 million in the prior year period.
Group total revenue reached HK$207.8 million, up 2 percent year-on-year, while EBITDA generated by Oriental Regent Ltd was HK$66.8 million, up 17 percent year-on-year.
Summit Ascent said that mass table saw significant improvement, with mass table revenue up 47 percent year-on-year to HK$83.5 million – replacing VIP business as the main revenue contributor.
Rolling chip turnover at Tigre De Cristal fell 23 percent year-on-year in 18H1.
Summit Ascent said this was a result of efforts to develop the premium mass segment targeting Asian players, as well as increased flight connectivity and increasing awareness of the property among its target feeder markets.
“Since the beginning of the year, we have been under increasing pressure from agents currently working at Tigre de Cristal requesting higher levels of rebates. Instead of giving in to such pressure which would ultimately result in a substantial erosion of margin, Management has decided to focus more of our efforts on developing our own “premium mass” business,” wrote the company in a statement.
Mass table business has now become the single biggest revenue contributor to our property. Our gaming machine business also continued to exhibit growth driven by continuous improvement in our marketing and promotional programs as well as continuous improvement in our gaming and non-gaming offerings.”