Summit Ascent Holdings, the subsidiary of LET Group that owns a controlling stake in integrated resort Tigre de Cristal near Vladivostok, Russia, has issued a profit warning for the six months to 30 June 2023 on expected losses of around HK$16.1 million (US$2.1 million).
According to a filing late Monday, the anticipated loss is mainly due to the recognition of exchange losses of approximately HK$35.2 million caused by the fluctuation of the Russian Ruble exchange rate. The company had recognized exchange gains of approximately HK$157.1 million in 1H22, when it reported a profit attributable to owners of the company of HK$85.2 million.
Final results are due to be released before the end of the month.
Summit Ascent has previously warned of challenging conditions at its Russian casino-resort as a result of the war in Ukraine and subsequent international sanctions, forcing the company to redirect its focus towards the domestic market rather than regional VIPs.
However, it has also been busy diversifying its interests, including the acquisition of land in Okinawa, Japan, to develop a luxury hotel and the provision of financial assistance to Suntrust Resort Holdings – an associated Philippines firm currently building a US$1.1 billion casino and hotel in Manila. It is likely Summit Ascent will leverage that assistance to claim a stake in the Manila project once it opens in late 2024.
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