Hong Kong-listed Success Universe has reported a narrowed HK$52.8 million (US$6.8 million) loss in the six months to 30 June 2021, aided by a slight improvement in its Macau casino business and fair value gains on the group’s investment properties.
However, the period remained challenging for the company, with revenue down 89% to just HK$35.4 million (US$4.5 million) – almost all of it from travel arm Jade Travel. With global travel severely impacted by the COVID-19 pandemic, Jade Travel saw revenue plummet 90% year-on-year to HK$33.4 million (US$4.3 million) with a segment loss of HK$1.9 million (US$244,000).
Success Universe, which owns a 49% stake in Macau integrated resort Ponte 16, recorded a loss form its share of HK$30.3 million (US$3.9 million), narrowed from HK$64 million (US$8.2 million) a year earlier. Adjusted EBITDA loss for Ponte 16 was HK$41.4 million (US$5.3 million).
Despite these challenges, the company said it remains optimistic about its long-term prospects.
“In the long run, since the Macau government has been actively enhancing its infrastructure network to align with China’s initiative to develop the Greater Bay Area, the Group believes Macau would enjoy a first-mover advantage in the revival of tourism demand,” Success Universe said.
“With all the catalysts rolling-in, Ponte 16 will maintain its market share by leveraging on its advantages and the vibrant cultural resources of the Inner Harbour area. Specifically, Ponte 16 will initiate a joint promotion with local retailers, restaurants, and souvenir shops within the Inner Harbour area in order to boost local consumption and promote this beautiful tourist hotspot.
“Although it is anticipated that the global business environment will continue to be volatile due to the evolving situation of the COVID-19 pandemic, encouraging news such as border reopening has been released piece by piece.
“The Group will set its focus on maintaining a high degree of corporate agility and implementing flexible development strategies and financial prudence to maintain resilience against the ever-changing market landscape with the aim of bringing long-term and sustainable returns to its shareholders.”
No interim dividend has been declared for the six month period through 30 June.