Kingston Financial Group has issued a profit warning for the six months ended 30 September 2020 on an expected 65% fall in profit compared with the same period last year, primarily due to lower revenue from its gaming operations in Macau.
The company operates Grandview Casino in Taipa and Casino Casa Real on the Peninsula, as well as providing securities brokerage, underwriting and placement services, and margin and IPO financing.
Kingston previously reported a profit of HK$477.6 million (US$61.6 million) through September 2019, suggesting profit over the same period this year will be closer to HK$165 million (US$21.3 million).
In a Friday filing, Kingston said it had experienced “a drop of revenue from the Group’s hotel and gaming business in Macau as a result of the drastic reduction in the number of visitor arrivals to Macau following the outbreak of COVID-19,” plus an increase in impairment loss on advances to customers in margin financing.
Earlier this year the company revealed a 50% fall in profit for the 12 months to 31 March 2020 to HK$503.1 million (US$64.9 million), with group-wide revenue down 13% to HK$2.63 billion (US$339.3 million).
