Suncity warns of 2018 loss

Suncity Group Holdings, Macau’s largest junket operator, has warned it will post a loss for 2018, swinging from a profit the prior year.

In a filing with the Hong Kong Stock Exchange, Suncity said the loss was mainly attributable to an amount of RMB864 million ($128.5 million) in respect of the change in fair value of derivative financial instruments and the absence of a reversal of impairment losses of RMB438 million, which boosted the 2017 results.  It also said it would not have the reversal of provisions for litigation of about RMB289 million which had also benefited the 2017 results.

For 2017, the company had a profit of RMB197 million.

Suncity has been expanding aggressively outside of Macau with a stake in a multi-billion dollar IR that is under construction in Vietnam as well as new VIP rooms and services contracts in Cambodia. It also recently said it was in discussions with South Korea’s Paradise Co. about cooperation in that operator’s Busan casino.