Falling revenue and profit at its flagship Ponte 16 property in Macau led to Success Universe booking a loss of HK$23.3 million for the six months to 30 June 2017, widened from its HK$15.7 million loss in the same period last year.
Ponte 16 – which saw its main gaming floor flooded during last week’s Typhoon Hato – has suffered as a result of “the challenges and intensive competition driven by new supply of hotel rooms and gaming tables” in Macau, the company said, adding that it had responded by “actively enhancing its entertainment portfolio and marketing strategy in order to maintain its competitive edge.
“During the reporting period, Ponte 16 has introduced a new game zone “G Racing Simulators” that offers 16 stations of 4K racing simulation of the Macau Grand Prix Racing Event, and invited quality street performers to share their passion for creativity and performance at the outdoor plaza of Sofitel Macau At Ponte 16, enriching the cultural atmosphere and injecting vitality in Macau’s Inner Harbor,” Success Universe said.
It has also recently completed renovations and upgrades to its hotel rooms.
Adjusted EBITDA for the period fell 5% year-on-year to HK$136.3 million, with shared profit from Ponte 16 down 32% from HK$10.6 million to HK$7.2 million.
Group-wide revenue for 1H17 fell 18% year-on-year to HK$284.8 million, which the company said was also the result of reduced revenue from its travel business. Jade Travel, one of the largest travel agencies in Canada, saw revenue decline 21.6% to HK$269.7 million with losses of HK$8.3 million.
The group’s Chinese lottery business increased revenue from HK$3 million to HK$11.9 million with losses narrowed from HK$10.8 million to HK$1.2 million.
Looking forward, Success Universe said, “The global and China economies remained on track for steady growth in the first half of the year. Together with the improving consumer sentiment, the global economic growth in 2017 is expected to be modest and reasonable. In the face of a more competitive operating environment and the ever-rising expectations from stakeholders, the Group will continue to devote in the entertainment and tourist-related industries, striving to fortify its business portfolio to capture the enormous market potential.”
