Hong Kong-listed Summit Ascent Holdings saw its profit soar to HK$42.8 million in 1H19, up from just HK$2.6 million in the same period last year, on the back of rapidly growing gaming revenue at its Russian integrated resort, Tigre de Cristal.
The group’s total revenue in the first six months of 2019 climbed 24% to HK$257.3 million with gaming revenue at Tigre de Cristal contributing HK$236.9 million thanks to strong growth in the VIP and slot machine segments.
Boosted by the recent acquisition by leading Asian VIP promotor Suncity Group of a 29.68% stake in Summit Ascent in April, rolling chip turnover at Tigre de Cristal increased 28% to HK$8.4 billion with win up 68% to HK$69 million.
Revenue from slot machines grew 38% to HK$91 million in 1H19 due to a 22% increase in slot handle to HK$1.6 billion.
However, net win from mass table games decreased 8% to HK$77 million, despite table drop holding steady, as a result of lower win percentage and a weak ruble which negatively impacted revenue reporting in Hong Kong dollars. Revenue from hotel operations increased by 19% to HK$20.4 million.
Tigre de Cristal is directly operated by Oriental Regent Limited, of which Summit Ascent owns a 60% stake. The group also receives a management fee of 3% of total gaming revenue, net of rebates.
Adjusted Property EBITDA generated by Oriental Regent during the first six months of the year was HK$108.5 million, representing a 62% increase over 1H18.
Providing an update on ongoing expansion initiatives at Tigre de Cristal, Summit Ascent revealed its Phase 2 development has been delayed until early 2022 due to expected redesigns following input from Suncity.
Enhancement to the current property are on track to launch in 1Q20 including the addition of a Korean BBQ restaurant, a Chinese hot pot, noodle bar, private club and more.
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