Kingston Financial Group Limited, operator of Macau’s Grandview Casino in Taipa and Casino Casa Real on the Peninsula, reported an 11% fall in gaming revenue to HK$215.7 million for the six months to 30 September 2019, with the company pointing to a weakening economy and social unrest in Hong Kong as the main drivers of the decline.
The revenue decline saw Adjusted EBITDA for the period down 9.3% year-on-year to HK$57.9 million, coming despite a slight increase in mass market gaming tables at its Macau casinos from 64 to 67 and VIP tables from 12 to 13 compared with the same period in 2018. The number of slot machines fell by 35 to 239. Kingston Financial operates Grandview and Casa Real under the license of SJM.
The group also suffered a slight 2% decline in revenue from its hotel business to HK$102.5 million, again pointing to the recent Hong Kong protests as having impacted Macau tourism. The average occupancy at Casa Real increased from 91% in 2018 to 93% this time around, while Grandview fell from 89% to 85%.
Kingston Financial, which reported a group-wide 12.4% decline in revenue to HK$1.40 billion and 19% reduction in profit to HK$477.6 million, said that gaming accounted for 16% of the its overall business with hotels comprising a further 7% during the six month period.