Success Universe, investor in Macau’s Ponte 16, has announced that it is expecting a decrease in consolidated profit for FY24 of between 40 percent and 50 percent.
According to a company filing with the Hong Kong Stock Exchange on Thursday, this would potentially halve the 2023 consolidated profit of HK$169 million ($21.75 million).
This comes despite a disposal of HK$31 million ($4 million) in overseas listed equity securities during the year.
The group notes that the decrease in consolidated profit can be mainly attributable to fair value loss on the group’s investment properties and a write-down of the group’s stock of properties.
It also relates to a substantial impairment loss relating to the group’s leasehold land and building, as well as a drop in the share of the profit of the associates related to Ponte 16.
Back in February, Success Universe’s Chairman Hoffman Ma opined that it is “unrealistic” to expect Macau’s gross gaming revenue to return to pre-pandemic levels.
The executive highlighted the significant drop in VIP revenues compared to 2019, while hoping for an increase in mass.
Ma pushed for more visitor traffic and diversification of Macau’s tourism offerings at the time, and multi-destination travel for visitors.
During the first half of 2024, the company reported a loss from operations of HK$79.6 million ($10.34 million), a dramatic reversal from the HK$94 million ($12.21 million) profit recorded in the first half of 2023.
Interestingly, the company sold off some $8.3 million (excluding transaction costs) in Tesla shares in December of 2024, a timely move considering the current drop in the company’s share price.
