Hong Kong-listed gaming investor LET Group said Monday it expects to report a loss for the six months to 30 June 2024, despite seemingly drawing a profit from its stake in Vietnamese integrated resort Hoiana and Russia’s Tigre de Cristal.
In a filing, the company – which is also majority shareholder of a new US$1.1 billion hotel and casino in Manila’s Westside City precinct due to open in early 2025 – stated that its 1H24 loss, the amount of which is unspecified, compares to a HK$450.6 million profit for the same period last year. The reasons for the reversal, LET Group added, is the absence of any reversal on impairment loss on equity loans to, loans to and amounts due from a joint venture, having previously recorded a reversal of impairment loss of HK$413.2 million in 1H23.
It also pointed to net exchange losses of HK$179.2 million, however these were somewhat offset by the share of profit of a joint venture of approximately HK$234.3 million – double its HK$124.1 million share a year earlier. This is seemingly a reference to Hoiana, of which the company owns a 34% stake.
In a separate filing, Summit Ascent Holdings – of which LET Group owns 69.66% – said it expects to record a profit of around HK$5.8 million in 1H24, reversing a loss of HK$16.1 million during the corresponding period in 2023.
The reversal is primarily related to a 4% increase in revenue from gaming and hotel operations at Tigre de Cristal near Vladivostok, Russia to HK$189.9 million and a decrease in exchange losses by 37% to approximately HK$22.0 million. It also cites a decrease in depreciation and amortisation by 26% to HK$29.5 million.
Despite the updates, both LET Group and Summit Ascent said by way of separate filings Monday that they will not publish their final results for the first six months of the year by 31 August due to ongoing discussions with its auditors. The two companies are also yet to publish their FY23 results after a mass walkout of directors earlier this year following news that the company had been quietly looking to sell off its Tigre de Cristal interests.
That sale ultimately fell through although a future sale has since been approved by way of a shareholder vote. Chairman Andrew Lo owns a controlling interest in LET Group.
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