Macau casino operator Success Universe Group Ltd has reported a loss of HK$33.5 million for the year ended 31 December 2017, narrowed from its HK$37.1 million loss 12 months earlier. The loss was heavily impacted by the sale of the company’s lottery business and the temporary closure of casino operations at Macau’s Ponte 16 following Typhoon Hato last August.
While consolidated revenue grew by 4% year-on-year to HK$589.9 million, the group suffered a loss from Ponte 16 of HK$9.9 million due primarily to major damage caused by Typhoon Hato and the subsequent closure of the casino – which was flooded – for a month. Ponte 16 recorded a profit of HK$17.5 million in 2016.
The closure saw Adjusted EBITDA for the year decrease by 19% to HK$225.3 million.
Success Universe also recorded a segment loss of HK$37.8 million from its lottery business, including a loss of approximately HK$37.9 million on its disposal in September for HK$12 million.
Despite the loss, the company said it maintained a positive view of its future, buoyed by improved hotel revenue at Sofitel Macau At Ponte 16 and an average occupancy rate that reached 91% for the year. It added that it would continue to provide unique non-gaming elements to provide a distinction from other integrated resorts in Macau.
“The major infrastructure improvement and the Greater Bay Area initiatives are believed to increase Macau’s exposure to domestic and international visitors,” Success Universe said.
“In addition to Macau government’s supporting policies in transforming into the ‘World Centre of Tourism and Leisure’, the group is optimistic with the growth potential in Macau in the long-term. Nowadays, non-gaming facilities in particular of the family fun entertainment have emerged a higher priority for Macau visitors.
“The group will continue to explore and enrich the spectrum of its entertainment offerings, while Ponte 16 is well-prepared to introduce new adventures and interactive games in order to remain competitive in the market.
“Taking advantage of higher volume of visitors to Macau, Ponte 16 continues to enhance its entertainment portfolio and marketing strategy to maintain its leading position as one of the most popular destinations in the Macau Peninsula.
“The only virtual and professional car racing facility in Macau — ‘G Racing Simulators’ was introduced during the reporting year, which offers 16 stations of 4K racing simulation of the Macau Grand Prix Racing Event. Ponte 16 also embraces the prolific local cultures through inviting quality street performers to make great performances at the outdoor plaza, filling additional vitality and arts to the unique local culture of Macau’s inner harbour.”
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