Macau casino investor Success Universe says it is expected to record an increased loss for the six months ended June 30, 2016.
The group said it expected to record an increase “of around 2 to 4 times” in loss after tax, mainly attributed to a decrease in the group’s share of profit in Ponte 16, the flagship investment project of the group, a significant decrease in operating revenue, a widened loss in the group’s lottery business as well as impairment loss on the carrying value of the trademark of the group’s travel business.
Earlier this year, the company reported it saw a loss for the full year 2015 as shared profit from its flagship Ponte 16 project fell and its lottery business declined due to China’s ban on online sales.
The group reported a loss of HK$11.6 million ($1.5 million) for the year ended Dec. 31, 2015, compared to a profit of HK$117.8 million in 2014.
This Dossier results from the “Life After POGOs” editorial project by Asia Gaming Brief which culminated with a pop-up digital forum on 9th December to discuss potentials ramifications in the industry.
Capacity expansion, Chinese exploration and concession extension are likely to lead to outperformance of Macau’s gaming stocks in the second half of this year after a sluggish start, according to analysis from Morgan Stanley.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing
what 2020 may have had in store.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.