Macau casino investor Success Universe Group swung to a 2015 loss 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.
According to a Hong Kong Stock Exchange filing, the group’s shared profit related to Ponte 16 decreased around 67 percent to HK$29.3 million, compared to HK$88.1 million the year before.
Revenue for the group was approximately HK$1 billion, down 23 percent from HK$1.3 billion in 2014, according to the filing. The lottery business was hurt by China’s ban on online sales.
Success Universe Group says it sees continued challenges arising from China’s economic slowdown in the year ahead, however it sees opportunity with its travel agency business, Jade Travel – which marks its 40th anniversary in 2016.
The group says it’s also optimistic about the future of Macau, as well as its China lottery business. “According to the data from the Macau Gaming Inspection and Coordination Bureau, the GGR recorded in early 2016 delivered better performance than market expectation which showed the sign of stabilization in Macau gaming industry,” said the group.
“Together with the infrastructure and other supporting facilities opening soon in and nearby Macau, such as the Hong Kong-Zhuhai-Macao Bridge, the group believes that Macau visitation will increase at a steady pace, which will support the growth of mass market gaming and tourist-related industries. Ponte 16 will continue to implement effective strategies and introduce new excitements to visitors during their stay in Macau.”
In regards to the future of lottery in China, the group said: “Lottery sales in China going paperless become an irresistible trend according to the central government’s internet plus strategy, thus a regulated and comprehensive mechanism is essential for the viable and sustainable development of the entire paperless lottery market.”