Hong Kong-listed Emperor Entertainment Hotel Limited saw its revenue fall by 51.4% year-on-year to HK$108.6 million (US$13.9 million) in the six months to 30 September 2022, impacted by the cessation of its Macau gaming business.
The company, which also operates hotels and services apartments in Hong Kong and Macau, ceased its Macau casino business at Grand Emperor Hotel in June due to the city’s pandemic situation and changes to how satellite casinos are viewed under the new gaming law.
Instead, Emperor E continues to operate non-gaming services at Grand Emperor with SJM Resorts, S.A. – the concession holder under which the company had run its satellite casino operations – taking over casino operations from 27 June to 31 December 2022.
As a result, total gaming revenue for the six-month period declined by 83.7% to HK$24.4 million (US$3.1 million) while the group fell to a widened HK$155.7 million (US$19.9 million) loss attributable to owners of the company.
Discussing the decision to cease gaming operations, Emperor E said, “The Directors considered that the Service Agreement [with SJM] is merely an arrangement for the Group to provide the space and the services to SJM in return for the utility fee and hotel service fee income and is the best business opportunity for the Company in the current situation, as the usage of the gaming area in Grand Emperor Hotel is restricted by the Macau government.”
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