Hong Kong-based Kingston Group warns of 90% profit decline
Kingston Financial Group and its subsidiaries anticipate a decrease of approximately 90% in profit attributable to owners of the company for the year ended 31 March 2021, compared to figures recorded for the same period last year.
“Such a significant decrease was primarily attributable to, among other factors, a drop in revenue from the group’s hotel and gaming business in Macau, as a result of the drastic reduction in the number of visitor arrivals to Macau following the outbreak of Covid-19,” the organisation stated.
Kingston Group is still finalising its annual results, which should be published on 30 June 2021.
The group runs two casinos, the Casa Real Casino on the Macau peninsula and the Grandview Casino on Taipa Island, both of which are four-star venues operated in partnership with SJM Holdings.
These losses are not a new concept for the group, with Kingston reporting a 65% drop in profit for the six months ended 30 September 2020.
Another reason for the profit warning was an increase in impairment loss on advances to customers in margin financing. The turnover rate for the period of those six months was approximately HK$1bn ($129m), a 27% year-on-year decline from HK$1.4bn.
Kingston Group engages in the hotel and entertainment business in Macau and has had a fairly established presence in the market since the company’s inception in the 1990s.
Yet for several years now, Kingston has been reporting declines in profit and revenue, with the Covid-19 pandemic perhaps being the straw to break the camel’s back.
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