Hong Kong’s Far East Consortium has announced an 8.0% increase in revenue from its gaming business to HK$86 million in the six months to 30 September following the reopening of its three casinos in the Czech Republic.
The company said in its interim results announcement this week that gaming revenue had quickly rebounded to near pre-COVID levels during four months of operations after reopening in late May. The casinos, run under subsidiary Trans World Corporation (TWC) and located along the borders with Germany and Austria, had closed in January.
Far East did not receive any income from its 4.99% stake in Australia’s Star Entertainment Group, with Star having put its dividend program on hold due to its own COVID-19 closures in Sydney and Queensland. However, the company is benefiting from a three-way strategic alliance agreement it entered into with Star and Chow Tai Fook in 2018 by which they are developing the AU$3.6 billion Queen’s Wharf Brisbane precinct as well as up to five mixed-use hotel towers alongside The Star Gold Coast.
One of those is already complete and another under construction, with Far East stating that its share of apartment pre-sales had reached HK$904 million as of 30 September 2021.
Future projects in the pipeline include re-development of The Spit Precinct on the Gold Coast and a mixed-use tower, slated to include The Ritz-Carlton, alongside The Star Sydney.
“The realisation of these potential developments will undoubtedly add to the Group’s development pipeline … and benefit the Group through its investment in The Star,” Far East said.
Far East is also looking to utilize its substantial database via its property development and hotel arms to increase visitation from Asia to its Czech Republic casinos in future.
“With the Group’s implementation of the ‘Asian Wallet’ strategy, the Group will endeavor to supplement its own hospitality offerings geographically by introducing more Asian tourists and customers in the region to TWC’s properties,” it said.
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