Hong Kong property development and management giant Far East Consortium (FEC) has reported gaming revenue of HK$148.9 million for the six months to 30 September 2018 – the first period in which the company has started to see contributions from its gaming operations.
FEC’s newly realized gaming revenue comes from two sources following the acquisition of Czech Republic casino operator TWC in April 2018 and investment in Australia’s Star Entertainment Group in which it now holds a 4.99% stake.
Revenue from TWC totaled HK$114.2 million while Star contributed HK$34.6 million representing its dividend receivable for the period. Combined profit from the segment totaled HK$85 million.
TWC operates three casinos in the Czech Republic under the American Chance Casinos brand, all of which are located on the country’s borders with Germany and Austria and cater to cross-border guests. The properties offer a combined 508 EGMs and 59 gaming tables.
FEC said it aims to introduce Asian customers to its TWC properties, adding, “It will not only bring to the group recurring earnings and cash flow contribution from its hospitality business, but will also serve as a platform for the group to pursue expansion in the gaming space.”
Acquisition of its 4.99% stake in Star Entertainment Group in March follows an original partnership with Star and fellow Hong Kong firm Chow Tai Fook in an AU$3.5 billion IR development in Brisbane known as Queen’s Wharf. FEC holds a 25% stake in Queen’s Wharf, which is due for completion in late 2023.
Discussing the group’s 4.99% Australian investment, FEC said it will serve to strengthen the group’s already established relationship with Star; add to its development pipeline in Australia, allow the group to increase its exposure to the QWB project and benefit from The Star’s future growth; benefit the group from cross-selling through future co-operation with The Star which is synergistic to the gaming platform of the Group, and benefit from cash flow from The Star’s future dividend distribution.
FEC also said that the Queen’s Wharf Project “brings together the group’s experience in international hospitality operation and mixed-use development, CTF’s extensive VIP customer base in Mainland China and Asian markets, as well as The Star’s operational experience in integrated resorts.
“The QWB Project is expected to contribute significantly to the group’s recurring cash flow stream as well as to add to its residential development pipeline.”
FEC’s partnership with The Star also includes significant development in Sydney and on the Gold Coast.
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