Summit Ascent posts 63% drop in revenue

Visitation dropped due to restrictions for Chinese nationals to enter Russia.
Visitation dropped due to restrictions for Chinese nationals to enter Russia.

The Tigre de Cristal operator has posted losses of HK$47 million (US$6 million) for the first half.

Russia.- Summit Ascent Holdings, operator of the Tigre de Cristal casino and resort in Primorye, has posted losses of HK$47 million (US$6 million) for the first half of 2020.

Revenues amounted to HK$96 million (US$12.3 million), down 63 per cent on 2019 (HK$257.2 million/US$33 million).

About HK$92.2 million (US$11.8 million) of that came from gaming via the 60 per cent equity interest that Summit Ascent owns in Oriental Regent, Tigre de Cristal’s operator.

Rolling chip turnover was HK$1,192 million (US$153.7 million), 86 per cent below last year’s performance, while mass table games decreased 60 per cent to HK$141 million (US$18.2 million).

The drop in slots revenue was not as steep since it targets mainly local players. Slots revenue fell 55 per cent to HK$41 million (US$5.2 million).

The casino and hotel was closed from March 28 to July 16 due to Covid-19 measures.

It was also affected by reduced visitation as the Russian Federation imposed barriers on the entrance of Chinese nationals, including visitors from Macau and Hong Kong, which typically feed the casino and resort’s rolling chip business.

EBITDA for the period was a negative HK$22.1 million (-US$2.85 million), compared to a positive HK$108.5 million (US$14 million) in the first half of 2019.

Summit Ascent said it maintained “a strong financial position, having HK$816.7 million (US$105.3 million) of cash on hand without any bank borrowings as at June 30 2020.”

It warned “Covid-19 will continue to present challenges to the group, and it is impossible to quantify the impact to the overall business due to many uncertainties.”

However, the company said: “The reopening of Tigre de Cristal from July 16 2020 has not only allowed employees to go back to work, it has also enabled the upgrade works of Tigre de Cristal to continue, which include a brand new Suncity VIP room, authentic Korean and Chinese restaurants and an addition of 34 hotel rooms.

“The upgrade is expected to be ready once the pandemic is settled.”

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