Suncity Goup posts 67.4% revenue drop for FY20
Hong Kong-listed casino operator, Suncity Group recorded total revenue of RMB199.3m ($30.3m) for full year 2020, a 67.4% decrease on the period prior.
Enforced venue closures took their toll on the company, most notably at Suncity’s new Hoiana resort in central Vietnam (pictured). The flagship property was slated for a grand launch on 28 June, but due to the ongoing pandemic this was revised down to a partial opening. The resort recorded total net revenue of $4.8m and a normalised adjusted EBITDA loss of $30.8m, in what the company called an “extremely challenging business environment due to Coiv-19”.
Despite the loses, FY Group net profit attributable to equity holders was RMB786.4m in 2020, significantly turnaround from a net loss of RMB1,484.3m in 2019, although this was primarily non-cash in nature.
In October the group acquired a controlling stake in the Tigre de Cristal resort in Russia, and reported strong performances to the year-end.
“COVID has offered a chance to prove that an integrated resort with a local exposure could offer some downside protection, such as Tigre de Cristal, for being EBITDA-positive in the second half of 2020 with the support of the local Russian market,” commented group chairman Alvin Chau Cheok Wa, in a shareholder letter.
Whilst FY2020 results were understandably below initial expectations, the group is forecasting for strong growth in the future. Investments are continuing to be made across the Suncity portfolio, including; ongoing preparations for the Hoiana full launch; gaming upgrades at Tigre de Cristal; and the continued construction of the Suncity Westside City project – slated to open in 2023.
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