Far East Consortium expects to post loss of US$115.6m for H2

The loss was primarily attributed to a change in the fair value of investment properties, a share of impairment loss recognised by an associate and a joint venture, and currency exchange losses.

Hong Kong.- The Far East Consortium (FEC) has reported it expects to record a HK$900m (US$115.6m) loss for the second half of the year. The loss was mainly attributed to a change in the fair value of investment properties and a share of impairment loss recognised by an associate and a joint venture (which is non-cash in nature) as well as currency exchange losses.

According to a recent filing, the company has anticipated that losses will not exceed the stated figure, especially when compared to a profit of HK$232.24m (US29.8m) during the same timeframe in the previous year. The group, however, highlighted that this estimate may still undergo adjustments before the release of its unaudited interim results on November 28.

Far East Consortium, in partnership with Chow Tai Fook, holds a 50 per cent stake in the Queen’s Wharf Brisbane project in Australia, which is a multi-billion-dollar venture that launched at the end of August this year. There were rumours that FEC and Chow Tai Fook would acquire up to a 20 per cent stake in The Star amid its recent financial troubles, but the deal never came to fruition.

For the financial year 2024, FEC reported revenue was up by 57.5 per cent year-on-year to HK$10.2bn (US$1.31bn). Gaming revenue was up 3 per cent at HK$402.4m (US$51.5m).

Hotel operations revenue increased by 31.2 per cent to HK$2bn (US$256m). Revenue from property development was HK$8bn (US$1.02bn), up 91.6 per cent.

The company stated: “The group’s gaming business has consistently shown signs of recovery and growth. Additionally, the Palasino Group reinstated its online gaming licence in Malta in November 2023 and has delineated plans for a soft launch of its service in Malta during FY2025.”

The Star Entertainment Group secures US$129.2m debt facility

The Star Entertainment Group has announced that it has executed a commitment letter for a new debt facility, which comprises AU$200m (US$129.2m) in two tranches of AU$100m (US$65.1m) each.

The company said it is currently working with lenders to meet the conditions to draw down the first tranche, with an availability period up to December 20. It confirmed that lenders have agreed to provide a covenant waiver for the next quarterly testing date, December 31.

The casino operator posted revenue of AU$351m (US$230.85m) for the first quarter of its financial year, down 18 per cent year-on-year and 11 per cent sequentially. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were negative AU$18m (US$11.84m) compared to positive AU$23m (US$15.1m) in the previous quarter. The company cited a “challenging operating environment and the continued implementation of mandatory carded play and cash limits.”