Macau junket investor Rich Goldman Holdings Ltd has issued a profit warning for the six months to 31 December 2019, with the group expected to record a loss compared to the gain it reported during the same period in 2018.
The loss is primarily attributable to macro-economic and social factors, the company said in a filing, including a decrease in revenue from its gaming and entertainment business due to the impact of the US-China trade war on China’s economy, plus a decrease in revenue from its hotel operation business in Hong Kong as a result of a fall in tourist numbers during recent protests. Those declines were partially offset by an increase in revenue from the company’s money lending business.
Rich Goldman also noted a likely impact from Tuesday’s news that the Macau government had ordered the closure of all casinos in the SAR for 15 days, which includes junket operations.
“One of the Group’s principal businesses is to introduce customers to respective casino’s VIP rooms in Macau and to receive the profit streams from junket businesses at respective casino’s VIP rooms in Macau through independent junket operators in Macau,” it said.
“The company is currently assessing the impact of the above suspension in casino operations in Macau on the group’s gambling business, which may in turn have a material adverse impact on the financial performance and position of the group.”
Rich Goldman oversees eight VIP gaming tables at Neptune GD VIP Club at Grand Lisboa.