Hong Kong-listed Summit Ascent Holdings, an investor in the Tigred Crystal Casino Resort (pictured) in Primorsky Krai near the Russian Pacific port of Vladivostok, confirmed on Tuesday that it had lost HK$16.1 million ($2.1 million) in the first half of the year, compared with a profit of HK$85.2 million a year earlier. Summit Ascent Holdings warned of currency exchange problems last week.
Tigred Crystal’s gaming and hotel operating revenue rose 2.3% year-over-year to HK$182 million in the first half of the year. Gaming operating revenue remained flat at HK$167.3 million in the period, compared with HK$167.6 million in the first half of 2022.
The company also confirmed to the Hong Kong Stock Exchange that the main reason for the overall loss was “recognition of exchange losses of about HK$35.2 million due to fluctuations in the Russian ruble exchange rate, while recognition of exchange losses of about HK$15.1 million in the first half of 2022.”
No dividends or offers have been made to our general shareholders in the first half of this year.
Tigre de Cristal’s adjusted earnings (EBITDA) in the first half of the year actually fell 5.0% year over year to HK$57 million.
Summit Ascent noted that profits generated at Tigre de Cristal in the first half of last year were mainly attributable to the business of Russian domestic customers.
The company also focused on the Russian consumer market and Russian supply chains and logistics in the first half of this year, noting that foreign tourism to the Russian Federation has “collapsed since early 2022.”
Summit Accent’s gaming and hotel operations are carried out through a 77.5% stake in a company called Oriental Regent Ltd. The group also receives management fees income, calculated as 3% of total net gaming revenue generated by G1 Entertainment LLC, a wholly owned subsidiary of Oriental Regent. G1 Entertainment holds the gaming license of Tigre de Crystal, which is granted by the Russian government.
Summit Accent had only HK$51.2 million in interest income from derivative financial instruments in connection with a loan agreement from SunTrust Resort Holdings, Inc. during the reporting period. The latter is developing a casino hotel at the Westside City project in Manila, the capital of the Philippines.
Suntrust is indirectly controlled by Hong Kong-listed LET Group Holdings Ltd., a casino project developer, the latter also controlled by Summit Ascent.
BY: 프라그마틱 슬롯 사이트
