Hong Kong-listed Success Universe has reported narrowed losses from its share in Macau integrated resort Ponte 16 in the six months to 30 June 2022, despite ongoing challenges as a result of the COVID-19 pandemic.
While the company’s group-wide loss – which also includes its travel and property investment arms – widened to HK$125.5 million, Success Universe said its shared loss from its stake in Ponte 16 narrowed from HK$30.3 million in 1H22 to HK$9.6 million. Adjusted EBITDA loss associated with the Macau resort also narrowed from HK$41.4 million to HK$1.0 million.
The company did, however, reveal it has since provided two shareholder’s loans since 30 June, including a HK$19.6 million loan in July and a HK$9.8 million loan in August for the purpose of financing Ponte 16’s operating costs. It had previously announced the provision of a financial assistance deal in June 2021 under which it is acting as guarantor on extended loan facilities for the property.
Success Universe owns 49% of Pier 16 – Property Development, the operating entity of Ponte 16, with SJM Resorts subsidiary SJM – Investment Limited holding the other 51%.
The company said in its 1H22 results announcement that hotel occupancy at Sofitel at Ponte 16 had averaged 46% for the reporting period.
Group-wide, Success Universe saw its revenue increase by 54% year-on-year to HK$54.5 million, with its widened loss “mainly attributable to a substantial increase in the unrealized fair value loss on the Group’s overseas listed equity securities.”
The improved revenue was due to a 59% uptick in its Canada-based travel business, Jade Travel, to HK$53.2 million with segment profit of HK$3.7 million reversing a loss of HK$1.9 million a year earlier.
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