Hong Kong-listed LET Group, formerly known as Suncity Group, has reported a profit attributable to equity holders of HK$584.7 million (US$74.5 million) for the six months ended 30 June 2023, reversing a loss of HK$253.0 million (US$32.2 million) in the prior year period due in part to the recovery of integrated resort Hoiana in central Vietnam. LET Group holds a 34% stake in Hoiana via its wholly-owned subsidiary Star Admiral.
Having opened into the teeth of the COVID-19 pandemic in mid-2020 and seen its access to international VIPs diminished due to the collapse of Macau’s junket industry, Hoiana booked an Adjusted EBITDA profit for the very first time of HK$10.1 million (US$1.3 million) in 1H23 – boosted by a 687% year-on-year increase in gross gaming revenues to HK$113.8 million (US$14.5 million).
The vast majority of this GGR came via Hoiana’s rolling chip program, which contributed HK$99.7 million (US$12.7 million) on a 592% increase in volume to HK$2.62 billion (US$334 million).
Mass table GGR for the period was HK$7.2 million (US$917,500) and electronic gaming machine GGR HK$6.9 million (US$879,250), while non-gaming contributed HK$18.2 million (US$2.3 million) in revenues versus HK$2.7 million (US$344,000) a year earlier.
LET Group said it recorded a share in profit of the Hoiana joint venture of HK$124.1 million (US$15.8 million) in 1H23, reversing a share of loss of HK$160.3 million (US$20.4 million) a year earlier. However, it noted that Hoiana is “still in a net liability position with accumulated losses,” and as the “carrying amount of the interest in the joint venture is reported as zero as at 30 June 2023 and 31 December 2022 respectively, the Group has discontinued recognition of share of loss of the joint venture since 1H 2022.”
With the prospects of Hoiana now improving, LET Group also recognized HK$413.2 million (US$52.7 million) in the reversal of impairment losses previously attributed to loans the company had granted to the Hoiana joint venture.
As reported by Inside Asian Gaming, HK$895.4 million (US$115 million) of loans and interest owed were repaid in March, prompting LET Group to reveal overnight that “the management of the Group considered the credit quality of the equity loans to a joint venture improved and therefore the Group reversed the previously assessed significant increase in credit risk since origination.”
LET Group also said it received revenue from its controlling stake in Russian integrated resort Tigre de Cristal of HK$182 million (US$23.2 million), while construction of a hotel and casino in Manila is ongoing and due to open in late 2024.
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