Macau casino investor Success Universe has reported a near 50 percent drop in gross profit for the six months ended June 30, 2016, mainly attributable to the lowered profits relating to its flagship investment project.
Success Universe, which earns shared profit of Ponte 16, said it saw approximately HK$10.6 million ($1.4 million) from operations in the first half of the year, down 31 percent from HK$15.3 million in 15H1.
“The Macau’s total gross gaming revenue started stabilising in the first half of 2016, the overall operating environment in Macau is still challenging,” it said.
A significant decrease in operating revenue and increase in loss of the group’s lottery business, as well as the impairment loss on the carrying value of the trademark of the Group’s travel business were also a factor in the decreased earnings.
Revenue of the group was approximately HK$347.1 million, down 42 percent from HK$595.6 million in 15H1.
Going forward, Mr. Yeung Hoi Sing, Sonny, chairman of Success Universe Group Limited commented, “In the face of the political and economic uncertainties, we expect the global economy performance will continue to grow at a modest pace in the second half of 2016 arising from softer monetary policies by global central banks. The Group will stay cautious and prudent towards the formulation and implementation of corporate strategies, whereas constantly identifies suitable business opportunities to achieve a long term growth. We believe that such strategies will lead the Group to a stronger foothold in the gaming, entertainment and tourist-related industries in the Asia-Pacific region.”