Macau casino investor Success Universe Ltd has reported a loss attributable to owners of the company of HK$141.9 million (US$18.3 million) in 2020, down from a profit of HK$74.2 million (US$9.5 million) recorded 12 months earlier, primarily due to its share of losses incurred at casino-resort Ponte 16.
According to the company’s results announcement released overnight, Success Universe and other associates of Pier 16 – Property Development, the operating entity of Ponte 16, shared losses of HK$145.7 million (US$18.7 million) in 2020 versus a shared profit of HK$116.8 million (US$15.0 million) in 2019.
Success Universe owns a 49% stake in Pier 16 – Property Development with the other 51% held by SJM – Investment Limited, a subsidiary of Sociedade de Jogos de Macau, S.A. (SJM).
Both companies also provided loans of HK$58.8 million (US$7.6 million) during 2020 to Ponte 16 to facilitate its ongoing operations, with Success Universe stating at the time the balance of loans owed to it by Pier 16 – Property Development now stands at HK$219 million (US$28.3 million).
Discussing Ponte 16’s challenges in 2020, Success Universe said, “The gaming and occupancy performance of Ponte 16 for 2020 were inevitably affected [by the COVID-19 pandemic].
“Due to the global travel [restrictions], the average occupancy rate of Sofitel Macau At Ponte 16 remained low for 2020 (2019: over 90%). An Adjusted EBITDA loss of approximately HK$242.9 million (US$31.2 million) was recorded for the year ended 31 December 2020, whereas the Adjusted EBITDA [profit] was HK$377.5 million (US$48.6 million) for the last corresponding year.”
Success Universe’s directly run business segments, Jade Travel Ltd and a property investment arm, also suffered losses in 2020. Jade Travel reported a loss of HK$11.2 million (US$1.4 million) on a 69% decline in revenue to HK$354.2 million (US$45.6 million), while the property business suffered a loss of HK$80.5 million (US$10.4 million).
