Hong Kong-listed gaming service provider Success Dragon International Holdings Ltd says it has ceased operations at The Landmark Macau due to higher operating costs and worsening performance of the property.
The news formed part of the company’s interim financial results for the six months to 30 September 2017, which saw Success Dragon book a loss of HK$28.6 million – slightly narrowed from a loss of HK$30.2 million in the prior year period.
Although group-wide loss improved, revenue from its gaming business in Macau decreased 5.7% from HK$64 million to HK$60.4 million which was “mainly attributable to intense competition in the Macau gaming market faced by the group.”
Success Dragon also booked a loss of HK$9.2 million from its gaming segment, widened from HK$2 million last year, pointing to The Landmark Macau as the primary reason.
“Despite the cost control measures implemented by the group in Macau operations, the loss from such segment increased,” the company said, adding it was “mainly due to heavy operating cost and worse performance of one of the operation outlets located at the Landmark Macau. As a result, the management of the group decided to cease such operation at The Landmark Macau as at the end of the period under review.”
Macau Legend Development Limited announced only two weeks ago that it had agreed to sell The Landmark Macau to a group of four buyers for a total of HK$4.6 billion, including its Pharaoh’s Palace Casino which occupies 16,698 square meters and boasts 60 mass market gaming tables, 17 VIP gaming tables and 141 slot machines.
In a filing to the Hong Kong Stock Exchange on Friday, Success Dragon also warned that its interim results for the six months to 30 September had been prepared on a going concern basis but added that a substantial shareholder, Tsang Ho Kwan, had agreed – for the time being at least – to “provide a shareholder’s loan for the company to meet its liabilities as they fall due.”
The company still provides gaming services at Grandview and Casa Real casinos in Macau.
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