Suncity terminates travel business
The company says it took the decision due to the impact of the Covid-19 pandemic and the disposal of Suncity Group Holdings’ aircraft.
Macau.- Suncity Group has announced that it has decided to terminate its travel business. The unit, which accounted for 12.6 per cent of the group’s total revenue in 2021, had been suspended since the winding up of locally-licensed junket operator Suncity Gaming Promotions Limited (SCGPCL) on December 1, 2021.
The company filed for dissolution following the arrest of its founder, Alvin Chau Cheok Wa, over cross-border gambling and money laundering accusations. Suncity said it had also taken the decision due to the disposal of its aircraft and the continued negative impact of the Covid-19 pandemic on the travel business.
Suncity Group reports US$33m loss for 2021
Suncity Group Holdings’s annual results for the year ended December 31 report 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 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.
