Hong Kong property giant Far East Consortium has reported a 14% increase in revenue to HK$151 million from its gaming operations in the six months to 30 September 2023, all generated by its land-based casinos in the Czech Republic.
Far East – whose gaming business comprises three casinos and one ancillary hotel in the Czech Republic operating under the “PALASINO” brand, plus three hotels in Germany and a hotel in Austria – said in its 1H24 results announcement that the majority of this revenue was from slot machines with the remaining revenue generated from table games.
The company did not generate any income from its 2.81% stake in Australia’s Star Entertainment Group, which is yet to reinstate a dividend program while it battles ongoing regulatory challenges.
Nevertheless, it said the group’s Czech gaming business has shown “continuous growth, with a loyal customer base and consistent attendance. Performance of gaming operations has continued its growth trajectory, delivering satisfactory returns.”
The company also revealed it is still in the process of spinning off its gaming business on the Hong Kong Stock Exchange, aimed at unlocking value and enabling Palasino Group to raise funds. Upon completion of the spin-off and listing of Palasino, Far East said it will hold a 73.21% stake in the new entity.
Group-wide, Far East saw its revenue increase by 108% year-on-year to HK$6.3 billion, however net profit attributable to shareholders decreased by 59.3% to HK$232 million due to a rise in finance costs and an increase in selling and marketing expenses in its dominant property development business.
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