Hong Kong-listed Summit Ascent Holdings reported a profit attributable to owners of the company of HK$85.2 million for the six months to 30 June 2022, buoyed by a 37% increase in net revenue at its majority-owned Russian casino resort, Tigre de Cristal.
The result reversed a loss of HK$131,000 during the same period last year, in the midst of the COVID-19 pandemic.
Despite challenges to its international business due to sanctions imposed on Russia for the war on Ukraine and the collapse of the Suncity VIP junket business – Summit Ascent is owned by Suncity’s listed arm – Tigre de Cristal saw gross gaming revenues rise 42.5% year-on-year to HK$198.2 million. Mass table games generated GGR of HK$110.9 million, up 56.0%, and electronic gaming machines HK$87.2 million, representing a 44.0% increase.
Hotel operations also saw a 53% year-on-year increase to HK$10.3 million with average hotel occupancy rates of 53% on weekends and 28% on weekdays.
Adjusted EBITDA of HK$60.0 million compared with HK$17.2 million in the first half of 2021.
Summit Ascent said it continues to face considerable challenges given the uncertainty surrounding if and when Western sanctions against the Russian Federation, imposed since late February 2022, will end, but added, “Not all is gloom and doom.”
“Our local Russian business flourished in the first half of 2022, which speaks volume that Tigre de Cristal excels in its home market,” the company explained. “The solid mass and electronic gaming operating results signify a complete recovery of the local demand in leisure and entertainment, a stamped approval of the appeal of our property as a premium integrated resort in the eyes of Russian consumers.
“Looking ahead, the long-term fundamentals in the Asian gaming markets have not changed, as observed in the strong gaming results recently recorded in countries with reopened borders and local access such as Singapore, South Korea and the Philippines. It may be too early to indicate what are some of the permanent implications of the COVID-19 pandemic and the Russia-Ukraine crisis could be for the entertainment industry.
“Our thriving local Russian business has already helped the Group to stay afloat with breathing space so that we can adjust our corporate strategies sustainably to mitigate such impacts to prepare ourselves for the long-awaited recovery.”
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