Hong Kong-listed financial services firm and Macau casino investor Kingston Financial Group Ltd has reported an 89% decline in profit attributable to owners of the company for the year ended 31 March 2021 to HK$56.3 million (US$7.3 million), heavily impacted by its hotel and gaming segments.
Having last week issued a profit warning which noted a significant fall in revenues at its two Macau properties, Grandview Casino in Taipa and Casino Casa Real on the Macau Peninsula – both run under license from SJM – Kingston confirmed overnight that revenue from its gaming segment had suffered a loss of HK$7.9 million (US$1 million) for the year versus a profit of HK$382.3 million (US$49.2 million) in FY2020.
Hotel income suffered a 75% decline in revenue to HK$44.6 million (US$5.7 million) due to the lower visitor arrivals into Macau, with the average occupancy rate of both Grandview and Casa Real falling to just 19%.
Group-wide revenue declined 22% year-on-year to HK$2.06 billion (US$265 million).
On the short-term prospects of its Macau gaming operations, Kingston said, “Macau’s tourism and gaming industry have been impacted very seriously by the COVID-19 pandemic. It is uncertain when this will end. Even [though] positive measures such as nationwide resumption of Macau’s Individual Visit Scheme in September 2020 have been implemented by the government, it is hard to predict when Macau’s tourism and gaming industry will fully recover.
“The Group will regularly review its policy to respond timely to the changing environment and sustain its growth.”
Kingston last year entered into an addendum to extend the provision of services to SJM for the two Macau casinos for a further two years, in line with the two-year extension of gaming concessions until June 2022 granted to SJM and MGM by the Macau SAR Government last year.
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