Success Universe warns that it will swing to a loss in the first half due to its share of “substantial” losses from the Ponte 16 casino in Macau.
In a statement to the Hong Kong Stock Exchange, the company said it expected a loss of about HK$120 million ($15.4 million) to HK$150 million, compared with a profit of $48.7 million a year earlier.
The company said the Covid-19 crisis has had a severe impact on revenue from Ponte 16. Macau’s casinos have been open for all but a two-week stint in February, however, due to stringent border restrictions visitation has been virtually wiped out.
The group also reported a fair value loss on its investment properties and was forced to write down the carrying value of its properties.
A joint venture between United States-based gaming group MGM Resorts International and Diaoyutai State Guesthouse is planning a further two new hotels in the mainland China city of Zhuhai, next to Macau.
For this edition of our magazine, we focus on Southeast Asia, with a particular look at the Philippines. The country’s casino industry has been among the hardest hit in Asia, with the integrated resorts in Manila’s Entertainment City having remained mostly closed to the general public since the beginning of the crisis last year.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.