Summit Ascent warns of upcoming losses
Summit Ascent Holdings announced it expects a loss “of not more than HKD50m for the six months ended 30 June 2020”. Unaudited consolidated revenue is predicted to drop by approximately 63%. The group had previously reported a profit of HKD42.8m for the same period in 2019. For Q1, the recorded group-wide loss was HKD13.3m. Tigre de Cristal’s gaming revenue dropped by 28% in Q1, earning HKD88.4m, while VIP revenue brought in HKD16.4m.
Summit Ascent is the investor and nearly 60% stakeholder in the Tigre de Cristal casino resort in the Russian Far East. The group stated the losses are due to the COVID-19 outbreak, as it disrupted travel to the Russian Federation by foreign nationals, and the casino operations have been suspended from March 28 to comply with the safety regulations. The casino was allowed to resume work on July 16, which is outside of the reporting period.
The group stated the warning about the net loss is preliminary since the group is “still in the process of finalising the unaudited interim results for the six-month period”, but the approved results should be announced in late August.
Suncity Group, which holds close to 25% of stakes in Summit Ascent, aims to increase its interest to 70%, becoming a major shareholder. It would cost Suncity HKD1.2bn, while Summit Ascent would receive the proceeds of HKD1.6bn. An estimated 37% of the sum will go to the development of Phase II of the casino.
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