Hong Kong-listed Summit Ascent Holdings says it continues to monitor the ongoing Russia-Ukraine conflict and its impact on the company’s Russian casino operations but insists it remains self-sufficient without the need for bank borrowings.
Issuing a statement overnight outlining its financial position ahead of its FY21 results announcement, Summit Ascent – the majority owner of Tigre de Cristal in Vladivostok, Russia – explained that it has been monitoring the impact of the war, “including, but not limited to, the fluctuations in the Russian ruble and interest rates.
“The Group’s integrated resort Tigre de Cristal is operating in the Russian Far East and has been self-sustaining without any bank borrowings,” it said.
“The Board will continue to assess the impact of economic sanctions against the Russian Federation on the financial position and operations of the Group and will make further announcements if and when it is necessary or required.”
Those challenges aside, Summit Ascent said it expects to report a 26% increase in revenue for FY21, with Adjusted EBITDA of HK$40.9 million (US$5.2 million) reversing an EBITDA loss of HK$14.7 million (US$1.9 million) in 2022. However, group loss for the year is expected to widen from HK$47.8 million (US$6.1 million) to HK$273.8 million (US$35.0 million).
The update comes after NagaCorp, which has been developing its own integrated resort in Vladivostok, announced earlier this month that it was indefinitely suspending the development due to “various uncertainties”.
IAG understands the project had been around 90% complete at the time of the suspension.