Hong Kong-listed Success Universe has issued a profit warning on an expected narrowing of losses for the six months ended 30 June 2021, in part due to lower losses at its Macau casino-resort, Ponte 16.
The company has flagged a 50% to 70% decrease in loss for the period from the HK$132.3 million (US$17 million) loss recorded over the same period in 2020. This was mainly attributable, it said, to a “decrease in the Group’s share of loss of the associates relating to Ponte 16, the flagship investment project of the Group.”
Final results are due to be published before the end of the month.
The 1H loss comes on the back of Success Universe extending loan facilities for its 49%-owned subsidiary Pier 16 – Property Development, the operating entity of Ponte 16, allowing it to refinance its existing facilities and make payments under Ponte 16’s land concession.
The extended facilities see the outstanding balance owed by Pier 16 – Property Development to Success Universe is HK$500 million, up from HK$337 million.
Ponte 16 reported a loss of HK$145.7 million (US$18.7 million) in 2020 as a result of the COVID-19 pandemic.