Hoiana GGR just US$13.6 million in 1H21 but Suncity Group stays profitable

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Suncity Groups Vietnam integrated resort Hoiana recorded gross gaming revenue of just US$13.6 million in 1H21, improved from previous quarters but a clear indication of the ongoing impact of COVID-19 on Asias destination resorts.

The update formed part of Suncitys earnings release for the six months to 30 June 2021, which saw the Hong Kong-listed company record a profit of RMB320.0 million (US$49.5 million), up 99% year-on-year. The increase was non-cash in nature, however, attributable instead to a gain on change in fair value of derivative financial instruments of RMB449.4 million and profit of RMB147.1 million from discontinued operations. Adjusted EBITDA was a loss of RMB33.7 million.

Hoiana, Suncitys joint venture project near Hoi An that held a soft opening in mid-2020, has been impacted by COVID-19 ever since launch. 1H GGR of US$13 million was an improvement of the second half of 2020 when GGR totaled just US$5.9 million. VIP revenue in H1 contributed the majority with US$8.9 million, while US$2.7 million was from mass gaming tables and US$1.4 million from EGMs. Revenue from non-gaming totaled US$1.6 million.

At Russian integrates resort Tigre de Cristal, of which Suncity holds a substantial interest via its controlling stake in Summit Ascent Holdings, GGR was HK$139.1 million with Adjusted EBITDA of HK$17.2 million.

Suncity said its travel related products and services recorded a substantial decrease in revenue from RMB67.7 million to RMB27.0 million in 1H21, and no revenue from property development.

In the past two decades, I have witnessed Asia gamings exponential growth, its downturns and its shifts towards leisure and entertainment, but none of these was even faintly comparable to the pandemic now, because borders grinding to a halt is a completely new phenomenon, said Suncity CEO Alvin Chau.

Our core strategy is to preserve cash and liquidity while retaining flexibility to adapt to the challenges brought by the pandemic and changing market conditions.

The afterlife of the Asian entertainment sector post-COVID awaits, because what doesnt kill you, makes you stronger.