Summit Ascent Holdings has announced it expects to record an increase in revenue and adjusted EBITDA of nearly HK$60m for the first half of the year.
Hong Kong.- Summit Ascent Holdings Ltd expects revenue to be up 37 per cent for the first half of the year. It says this will help it return to profit after it lost HK$8m (US$1m) during the first half of 2021.
The company expects to record a positive adjusted EBITDA of nearly HK$60m and a profit of at least HK$123m.
It noted that Tigre de Cristal in the Primorye Gambling Zone in Russia is operating and has been self-sustaining without any bank borrowings. However, sanctions resulting from the Russia-Ukraine conflict may cause significant long-term damage to the Russian economy and its tourism industry.
“The board has been closely monitoring the market conditions, including a possible geopolitical realignment, supply disruptions, and food and energy insecurity, and will continue to assess the impact on the financial position and operations of the group and make further announcements if and when necessary or required, the company said.
It added: “In addition to the positive cash flows generated from operating activities, the expected profit is mainly derived from the net exchange gain of approximately HK$157m due to the unanticipated appreciation of the Russian rouble for the six months ended June 30, 2022.”
Financial results for the six months ended 30 June 2022 are expected to be released on 23 August 2022.
Summit Ascent hopes to become pan-Asian gaming operator
In April, the Hong Kong company said it was “prudently” transforming into a pan-Asian gaming operator after investing PHP5.6bn and PHP6.4bn in convertible bonds between 2020 and 2021.
It also said its Westside City IR project in Manila was going to provide a “fast track” for the group to enter the pan-Asian gaming market upon completion.
In March, Summit Ascent announced that it had decided to delay its Tigre de Cristal Phase II development in the Primorye Gambling Zone in Russia until 2025 at the earliest due to economic uncertainty and ongoing travel restrictions. The opening of the second phase was scheduled for next year.