Russian domestic market drives rising revenues for Summit Ascents Tigre de Cristal in 1H20

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Tigre de Cristal

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Summit Ascent Holdings says it has now completed all upgrade works at its Russian integrated resort, Tigre de Cristal in Vladivostok, with a new Suncity Premium Club, authentic hotpot restaurant and private club now awaiting the reopening of borders.

The update formed part of Summit Ascents earnings release for the six months to 30 June 2021, which saw the domestic mass and slot machine market drive a 9% year-on-year increase in GGR to HK$139.1 million (US$17.9 million).

The improvement came despite Tigre de Cristal recording zero revenue from its rolling chip business in H1 compared with HK$50.0 million (US$6.4 million)in the first six months of 2020.

Instead, mass table GGR notched a 92% year-on-year increase to HK$68.5 million (US$8.8 million)on a 68% rise in table drop to HK$237 million (US$30.4 million), while slot machine GGR grew 70.2% to HK$70.6 million (US$9.1 million)with volume rising 93% to HK$1.56 billion(US$200.2 million).

Hotel revenue grew 82% year-on-year to HK$6.7 million (US$860,000).

Group-wide, the first six months of 2021 saw total revenue increase 35% year-on-year and 12% versus 2H20 to HK$129.5 million (US$16.6 million).

Adjusted EBITDA of HK$17.2 million (US$2.2 million)also reversed an EBITDA loss of HK$22.1 million (US$2.8 million)in 1H20, representing a 131% increase over the back half of 2020.

Net loss attributable to owners of the company narrowed from HK$47 million (US$6.0 million)over the same period last year to just HK$130,000 (US$16,700).

Summit Ascent, which is 69.66% owned by Suncity Group, said it is confident its Russian IR will make considerable strides forward as borders start to open, adding that uncertainty surrounding Japans land-based casino market could work in Russias favor.

Part of Tigre de Cristals Phase 1 upgrade work.

We are excited to observe that international flights are resuming to the Vladivostok International Airport from 2021 onwards from places such as Seoul and Tokyo, the company said.

Although the number of tourists arriving at Vladivostok via these flights is low due to back-and-forth quarantine requirements, we are confident on the overall long-term appeal of the IEZ Primorye. Together with the recent and would-be openings of new integrated resorts in the IEZ Primorye, the cluster effect can draw tourists and turn the area into a leisure destination on its own.

The uncertainty in land-based gaming developments in Japan also poses an opportunity for the IEZ Primorye to fill this gap as it is only a short flight away for Japanese tourists.

Summit Ascent added that planning and construction work on Tigre de Cristal Phase II is also well underway despite some delays due to COVID-19. When both the Phase 1 upgrade and Phase II expansion are fully operational, Tigre de Cristal will triple its number of rooms, and double in number its gaming facilities.