Rich Goldman Holdings recorded a 9.2% increase in profit attributable to owners of the company in FY19, despite revenue from its gaming and entertainment business declining 18.9% due to the termination of its junket promotion contract with Venetian Macau Limited (VML).
The company’s gaming revenue fell from HK$91.3 million to HK$74.1 million in the 12 months to 30 June 2019, all of it coming from its sole remaining VIP club, Neptune GD VIP Club at Grand Lisboa, where Rich Goldman has an interest in eight tables. Revenue at Neptune GD VIP Club fell 9% compared to FY18 numbers.
Rich Goldman previously held three promotion agreements in Macau, including two with VML – the subsidiary that holds Sands China’s gaming concession – but was informed by VML in May 2017 that one promotion agreement had been terminated and in August 2017 that the second had been terminated. FY19 was the first full year that neither of those junket operations were recognized in Rich Goldman’s earnings.
Nevertheless, expansion into the money lending and hotel operations businesses has helped Rich Goldman recover much of that revenue, with the company reporting a 31.2% increase in money lending revenue to HK$20.6 million and a 5.5% increase in hotel revenue to HK$24.8 million.
“Our Group had benefited from consistently strong financial results achieved in these new segments for two consecutive years,” the company said in its FY19 results announcement.