Australian-listed Silver Heritage Group says its October earnings took a hit on the back of bad luck in the VIP segment at Tiger Palace Resort in Nepal and lower than expected earnings at its Vietnam casino, Phoenix International Club.
In a trading update filed with the Australian Securities Exchange, Silver Heritage revealed that operations at Phoenix had come in well below budget for the month with GGR of around US$1.5 million compared with the year-to-date average of US$2.49 million. The reduction was blamed on a significant entry fee imposed by the actual owners of the resort and increased competition in the region.
Silver Heritage earns 43% of GGR from Phoenix International Club.
The company also took an earnings hit at Tiger Palace, where VIP led to an overall hold rate of 11% versus expectation of 26%.
On a more positive note, Silver Heritage said it achieved record monthly GGR at its original Nepal casino, TMCCK in Kathmandu, of US$670,000 of which it holds 100%.
The company has also held discussions with the owners of Phoenix International Club in Vietnam which have since led to the removal of the entry fee.
“November results to date have shown signs of recovery with results to 28 November already at US$1.9 million,” Silver Heritage said in its update.