Hong Kong property development and hotel management giant Far East Consortium saw a 4.6% increase in revenue from gaming operations for the year ended 31 March 2020, boosted by the first full year of contribution following the 2018 acquisition of European casino operator Trans World Corporation (TWC).
FEC reported a 4.6% increase in revenue from gaming to HK$271 million for the year, with TWC – which owns and operates three casinos in Austria – booking 13.1% revenue growth to HK$222.7 million.
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The remaining HK$48.6 million came from FEC’s 4.99% stake in Australia’s Star Entertainment Group, representing a 22.2% year-on-year decline due to a decrease in final dividend declared by The Star.
FEC acquired its stake in March 2018 as part of a three-way strategic alliance with Star and fellow Hong Kong investor Chow Tai Fook Group, with the trio currently developing the AU$3.6 billion Queen’s Wharf in Brisbane as well as expanding The Star Sydney and The Star Gold Coast.
While COVID-19 has impacted both its European and Australian casino interests, FEC said it remains confident of its long-term prospects – particularly as it relates to cross-selling to the company’s existing database, which includes clients from the 31 hotels it operates globally.
Pointing to TWC, FEC said, “TWC’s gaming operations continued to perform well with the synergies created between the Group and TWC following the acquisition since April 2018, including, for instance, cross-selling opportunities, improvement of gaming machines and introduction of new table games.
“The three casinos were forced to close in mid-March 2020 due to COVID-19 outbreak but have reopened since early June 2020. The Group believes the aforesaid efforts to generate positive results upon the relaxing of the COVID-19 related restriction and the recovery of the economic environment.”
“With the Group’s implementation of the ‘Asian Wallet’ strategy, the Group will endeavor to introduce more Asian customers living in the region to TWC’s properties to supplement the Group’s hospitality offerings geographically.”
