Macau junket investor Rich Goldman Holdings, formerly known as Neptune Group, saw its profit attributable to owners of the company climb to HK$39.0 million in the 12 months to 30 June 2018, turning around a HK$10.2 million loss the previous year.
The positive result came despite a 56.0% decline in revenue to HK$130.5 million due to the termination of two key junket agreements with Venetian Macao Limited (VML). Announcing its 2018 financial results on Friday, Rich Goldman said that the improved profit was due to growth in its money lending and hotel operations business segments, a HK$42 million reversal of impairment losses of trade receivables in FY2018 and a one-off loss on disposal of an associated company of HK$62.9 million recorded in the previous financial year.
The company revealed in May 2017 that VML had terminated a promotion agreement with Hao Cai Sociedade Unipessoal Ltd to operate 14 VIP tables at the Venetian and in August that VML had terminated a second agreement with Hou Wan Entertainment Ltd to operate 10 VIP tables at Sands Macao. Those terminations left Rich Goldman with just one Macau junket partner, Neptune GD VIP Club, running eight VIP tables at Grand Lisboa.
As a result, the group’s gaming revenue decreased by 69.09% in the 12 months to 30 June 2018 to HK$91.3 million. Neptune GD VIP Club saw its revenue fall 14% for the year to HK$81.0 million.
However, Rich Goldman said it had enjoyed strong results from the expansion of its money lending business, lending a total of HK$263 million compared with HK$65 million in the previous year.
“The resulting interest revenue generated for the year ended 30 June 2018 amounted to approximately HK$15.7 million, a significant advancement when compared to the revenue of HK$1.1 million generated for the year ended 30 June 2017,” the company said. “It is an encouraging expansion and a great achievement for a newly established segment. Our customers are all renowned for their great creditability and are also effectively managed by our management. Therefore, all of the principal and interest income had been collected in accordance with their corresponding repayment schedules during the year.”
Rich Goldman also saw improved revenue from its hotel operations business, having purchased Harbour Bay Hotel in Hong Kong in 2017. Revenue from the hotel grew 30% in FY18 to HK$23.5 million.