Summit Ascent returns to profit in 1H22 thanks to a strong domestic recovery at Tigre de Cristal – IAG
Hong Kong-listed Summit Ascent Holdings reported profit attributable to company owners of HK$85.2 million for the six months ending June 30, 2022, supported by a 37% increase in net income of its majority-owned Russian casino resort, Tigre de Cristal.
The result reversed a loss of HK$131,000 in the same period last year amid the COVID-19 pandemic.
Despite challenges to its international business due to sanctions imposed on Russia for the war on Ukraine and the collapse of Suncity’s VIP travel business – Summit Ascent is owned by the listed arm of Suncity – Tiger of Cristal saw its gross gaming revenue increase by 42.5% year over year. year to HK$198.2 million. Mass table games generated GGR of HK$110.9 million, up 56.0%, and electronic gaming machines of HK$87.2 million, an increase of 44.0% .
Hotel operations also saw a 53% year-on-year increase to HK$10.3 million, with hotel occupancy rates averaging 53% on weekends and 28% on weekdays.
Adjusted EBITDA of HK$60.0 million, compared to HK$17.2 million in the first half of 2021.
Summit Ascent said it continues to face considerable challenges given the uncertainty over whether and when Western sanctions against the Russian Federation, imposed since late February 2022, will end, but added: ” All is not dark and catastrophic”.
“Our local Russian business has thrived in the first half of 2022, which speaks volumes to the fact that Tigre de Cristal is excelling in its home market,” the company explained. “Strong mass and electronic gaming operating results signify a full recovery in local demand for recreation and entertainment, a stamped endorsement of our property’s appeal as an upscale integrated resort in the eyes of Russian consumers.
“Looking forward, the long-term fundamentals of Asian gaming markets have not changed, as seen by recent strong gaming results in countries with reopened borders and local access such as Singapore, South Korea and the Philippines It may be too early to tell what some of the permanent implications of the COVID-19 pandemic and the Russian-Ukrainian crisis may be for the entertainment industry.
“Our thriving local Russian business has already helped the Group stay afloat with respite so that we can adjust our business strategies in a sustainable way to mitigate these impacts to prepare for the long-awaited recovery.”