Success Universe to swing to loss as gaming revenue evaporates

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.