SunCity Records 70% Decrease In H1 Revenue

For the first half of the year, integrated resort operator Suncity Group recorded a 70 percent drop in revenue as the ongoing coronavirus pandemic continues to cause global disruption.

Asserting that the group continues to evaluate various integrated resort projects in Asia as well as implementing a strict cost control programme across the board, revenue for H1 2020 fell by 70 percent year-on-year to RMB 93.7 m (£10.2 m), gross profit fell by 46 percent to RMB 28 m ( £ 3.05 m) and loss attributable to the company’s owners was RMB 118.6 m (£12.9 m), representing a reduction of 91 percent.

The group says it’s revenue decrease is primarily attributable to declines from the segment of travel related products and services, which SunCity says has affected property development and leasing revenue.

As expected, COVID-19 affected all jurisdictions in which Suncity is exposed in varying degrees as tourism was severely disrupted in the first half of 2020, but on June 28 the group completed its exclusive preliminary opening of its Hoiana property.

Officially entering its ‘exclusive preview phase,’ the opening included the casino’s ground floor mass gaming floor, Hoiana Hotel and Suites rooms, F&B facilities and a few retail outlets.

Due to current market conditions, hotel rooms will be rolled out in phases depending on the demand for balancing costs and benefits, with the grand opening of the group ‘s flagship property shelved until 2021

In Russia, where the group boasts the property of Tigre de Cristal, GDP declined by 4.2 percent in the first half of 2020 as government mandated closures began on March 16, with limited international flights not resuming until July. Tigre de Cristal recorded month-to – month growth in all gaming metrics in July and August, after the reporting period.

All integrated resorts in the Philippines were required to be closed from May 15, 2020 onwards and a green light for reopening has not been offered yet.

The SunCity chairman Chau Cheok Wa explained: “It was undoubtedly a tough first half of the year as COVID-19 pandemic has been bombarding all parts of the economy – travel bans, businesses halt, stock markets dwindle. COVID-19 was one of the worst crises seen in humanity in decades.

“Not all is gloom though, as every cloud has a silver lining. Among which our flagship integrated resort Hoiana welcomed our first customers during the preview on 28 June 2020. It was one of my regrets that I could not be present to witness the preview ribbon-cutting in Hoiana as a result of the virus. The Hoiana team on the ground deserves all the applause for making the preview on 28 June a reality.

“In addition, I would like to extend my heartfelt gratitude to the researchers, medical practitioners and world leaders for their hard work in combating this novel invisible monster to mankind.”

Adding: “COVID-19 has not only affected Hoiana, it has affected our other jurisdictions too. In Vladivostok, Russia, Tigre de Cristal was mandated to close its doors for the entire second quarter in 2020.

“As such, the whole second quarter of Tigre de Cristal was running on near-zero revenues. I would also have attended the ground-breaking ceremony for Westside City Project in Manila should the pandemic not exist.

“Policies by governments across borders vary which made it an impossible task to determine how much COVID-19 could cost exactly to Suncity in the short-term.

“Nevertheless, there were also bright spots: Macau was back to tourism business again to IVS travellers; Hoiana was never mandated to suspend operations; Tigre de Cristal was finally allowed to be re-open from 16 July onwards; there was no operational impact on Westside City Project. I am also pleased to report that during the first half of 2020, Suncity was able to narrow its losses by 91 percent.”