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.
AstroPay is the pioneer payment solution for thousands of consumers in Latin America, Asia and Africa, who want to purchase online on international sites, that helps merchants access new markets through its main product, AstroPay Card.
Gaming suppliers, like all areas of the industry, have felt the pinch from the Covid-19 crisis, though their growing digital businesses have proved a bright spot and helped offset the impact of the crisis.
Consolidation of the bases and advancement in adversity was the thrust of Macau Chief Executive’s policy address for 2021, though it gave little away when it came to the current pillar of the economy - the gaming industry.
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.