Onus on VIP play
Rich Goldman Holdings Ltd., the Macau junket investor formerly known as the Neptune Group Ltd., says its net profit for the six months to December 31 fell by 72 percent year-on-year to approximately HKD7.26 million (US$927,600).
In a filing to the Hong Kong Stock Exchange, the company reported revenue for the period of nearly HKD64.24 million (US$8.2 million), down 52.7 percent from the prior year.
The firm’s gaming and entertainment segment was the main contributor to the half-year revenue, amounting to HKD47.59 million, down nearly 65 percent from a year earlier, according to GGRAsia. But it still accounted for about 74 percent of total revenue in the six months to December 31, 2017.
The company anticipated a decline in profit, mainly due to “the cessation of profit stream” from two VIP rooms in the previous financial year. Two of the firm’s partners had their junket agreements terminated by Sands China Ltd. last summer. That left only one junket partner in the Macau market, operating eight tables at Grand Lisboa.
The company added that the drop in gaming revenue was offset by the collection of a “considerable amount” of “long overdue” trade receivables from some of its business partners. “Our debts over 365 days have been decreased to approximately HKD47 million when compared to HKD357 million at 30 June 2017,” stated the filing.
“We have a positive view on the Macau gaming industry given the numerous growth drivers in the nearly future. It remained one of our important businesses if the recent encouraging growth can persist,” the company added.
Rich Goldman has been diversifying beyond gaming, adding a money-lending operation and also a hotel business. “Positive results have been achieved in these two new segments during the six months ended 31 December 2017,” said the firm.
