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Success Universe reports 41 percent growth in gross profits for 1H23

Success Universe Group, an investor in Macau’s Ponte 16, posted a gross profit of HK$7.5 million ($960,000) in 1H23, up 41 percent compared to 1H22.

According to its interim results, released on Wednesday, Success Universe recorded revenue of HK$68.4 million ($8.7 million), up 26 percent from the previous year.

The Hong Kong-listed company notes that leveraging the strong resurgence of visitors to Macau, it perceives the mass market as the ‘most promising segment for sustainable growth’. However, the company’s directors do not recommend the payment of an interim dividend for the six months ending on June 30, 2023.

The group’s shared profit of the associates related to Ponte 16, the flagship investment project, was HK$71.6 million ($9.1 million) in 1H23, whereas the same property recorded a loss of HK$9.6 million ($1.2 million) in 1H22.

The profit attributable to owners reached HK$153.8 million ($19.6 million), with earnings per share at 3.12 HK cents for the period. The company notes that the turnaround from a loss to profit for 1H23 was mainly attributable to ‘the recognition of a substantial fair value gain on the Group’s overseas-listed equity securities of HK$105.5 million ($13.4 million) and the group’s share of profit from Ponte 16.

The report also mentions that Success Universe continued to hold shares in Tesla (the US electric vehicle firm). As of June 30th, 2023, the group held HK$199 million ($25.4 million) of Tesla stock, while the initial investment cost was only HK$47 million ($6 million).

The casino of Ponte 16 is operating under SJM’s gaming license. As of June 30th, 2023, the casino had 109 gaming tables, consisting of 103 mass tables and six high-limit tables.

The average occupancy rate of Sofitel Macau At Ponte 16 reached 85 percent in 1H23, compared to 46 percent in 1H22. Its adjusted EBITDA was HK$167.8 million ($21.4 million).

Success Universe has also highlighted its marketing movements, noting that Ponte 16’s one-stop platform featuring travel information and promotions in Macau’s local community, dubbed OLA, continued to expand its presence in Macau and Zhuhai. This expansion aims to foster stronger inter-connectivity within the Greater Bay Area.

‘Since the launch of OLA in late 2021, 110 merchant partners have been recruited, covering 167 merchant outlets. This has helped Ponte 16 strengthen its market presence and firmly establish itself on the fast track to recovery in 2023.’

Additionally, ‘to develop impactful marketing strategies, Ponte 16 actively collaborates with various social media and online platforms, thereby widening its exposure among younger Chinese generations whose spending habits and buying intentions are strongly influenced by endorsements and recommendations from Key Opinion Leaders (KOLs).’

AGBrief Editorial
AGBrief Editorialhttps://agbrief.com/about-asia-gaming-brief/
The AGBrief Editorial Team is a group of contributors living around the world that are connected to Asia Gaming Brief. They are active members in pursuing the sources of our news, making them reliable and accurate for our readers.

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