Summit Ascent posts US$2.1m net loss in H1

The company attributed the increase in losses to the fluctuation of the Russian ruble.

Hong Kong.- Summit Ascent Holdings has shared its financial results for the first half of the year. It’s posted a net loss of HK$16.1m (US$2.1m) compared to profit of HK$85.2m profit in H1 2022.

The primary factor was exchange losses amounting to approximately HK$35.2m stemming from fluctuations in the Russian ruble, with its fall contrasting to HK$157.1m in exchange gains in the first half of 2022. 

The company’s revenue from gaming and hotel operations at Tigre de Cristal rose by 2.3 per cent year-on-year to HK$182m. Revenue from gaming operations declined from HK$167.6m to HK$167.3m. Earnings before interest, taxation, depreciation, and amortization (EBITDA) fell 5 per cent year-on-year, to HK$57m.

Summit Ascent’s approach to the Russian market shifted after Russia’s invasion of Ukraine to focus on the domestic consumer market and supply chains. The company reported no dividend payments for ordinary shareholders for this reporting period.

Summit Ascent’s gaming and hospitality operations are managed through its 77.5 per cent stake in a company called Oriental Regent. The group receives a management fee equal to 3 per cent of the gross net gaming revenue fully generated by G1 Entertainment, a subsidiary of Oriental Regent which has a licence for Tigre de Cristal from the Russian government.

During the period, Summit Ascent earned nearly HK$51.2m in interest income from derivative financial instruments related to its loan agreement with Suntrust Resort Holdings, which is developing a casino hotel in the Westside City development in Manila, the Philippines. Suntrust is indirectly managed by Hong Kong-listed casino project developer LET Group Holdings. The latter also controls Summit Ascent.

Summit Ascent’s revenue in 2022 was HK$372.3m (US$47.43m), up 40 per cent compared to HK$265.5m in 2021, predominantly attributable to the Russian mass table and electronic gaming. Gaming revenue increased by 38 per cent from the previous year to nearly HK$340.8m (US$43.43m) while revenue from the hotel business increased by 106.4 per cent to HK$17.1m.