Suncity Group reports US$33m loss for 2021
Suncity Group Holdings Ltd has shared its financial results for the year 2021, positing a loss of HKD258.3m (US$33m).
Macau.- Suncity Group Holdings Ltd has revealed annual results for the year ended December 31, 2021. It posted a HKD258.3m (US$33m) loss, which compares to a profit of HKD884.8m in 2020.
Revenue from continuing operations increased by 87 per cent from HKD181.8m to approximately HKD340.4m. Gross profit from continuing operations increased by 232 per cent from HKD27.1m to approximately HKD90.1m.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) loss narrowed to HKD70.8m, compared to an adjusted EBITDA loss of HKD134.1m in 2020. The group said its 2021 loss was due to factors including financing costs of about HKD283.9m and a stake of about HKD438m in the loss of a joint venture at Hoiana Casino Resort in Vietnam.
Suncity Group Holdings holds an indirect stake of approximately 34 per cent in Hoiana. In 2021, Hoiana’s net income was approximately US$12.1m and the casino’s gross gaming revenue was US$20.8m. Adjusted EBITDA for the property was approximately negative US$29m.
Other factors contributing to Suncity Group Holdings’ annual loss included an impairment loss of approximately HKD287.1m on property, operating rights and equipment related to its indirect investment in the Russian casino resort Tigre de Cristal.
The company recently revealed that Tigre de Cristal Phase II in the Primorye Gambling Zone in Russia has been postponed until “no earlier than 2025” due to the negative impact of the Covid-19 pandemic, travel restrictions and economic uncertainties.
Suncity Group Holdings Ltd was chaired by Alvin Chau Cheok Wa until his arrest last November, following Chinese accusations of cross-border gambling and money laundering. The firm has no longer been able to rely on Chau’s financial support and has yet to appoint a new chairman.
PAGCOR orders Suncity Group to stop all activity in The Philippines
As Focus Gaming News previously reported, after a lengthy investigation into the misappropriation of customer funds, PAGCOR has determined that Suncity Group is no longer suitable to hold a licence in the Philippines. However, Suncity may regain eligibility after fulfilling certain conditions.
These terms include that all player deposits received in the Philippines be deposited into bank accounts for this purpose only and not be mixed with any capital or working capital. In addition, no amount may be used from any such deposit account unless withdrawn or used by the depositing player.
Suncity was accused of misappropriating funds from customers after two groups filed complaints with PAGCOR in early 2021. Some 29 people claim funds totalling PHP1.95bn (US$ 37.3m) and HKD 160.8m (US$ 20.6m) were misappropriated.
