Kingston Financial reveals extension of Macau casino license extension under SJM as gaming segment falls to US$1.8 million loss through September - IAG
Sunday 29th November 2020
Kingston Financial Group has reported a gaming loss of HK$13.6 million (US$1.8 million) for the six months to 30 September 2020, with a reduction in business as a result of COVID-19 driving a 106% decline in segment revenue at its two Macau casinos.
The decline comes as Kingston revealed it has recently entered into an addendum to extend the provision of services to Sociedade de Jogos de Macau, S.A (SJM) in two Macau casinos for a further two years, in line with the two-year extension of gaming concessions until June 2022 granted to SJM and MGM by the Macau SAR Government last year.
Kingston operates Grandview Casino in Taipa and Casino Casa Real on the Macau Peninsula under license from SJM, as well as providing securities brokerage, underwriting and placement services, and margin and IPO financing.
"During the Period, the Group entered into an addendum with SJM for the continuation of the provision of services to SJM in the two casinos located at the Group's two hotels," Kingston said. "Pursuant to the Addendum, the term of service has been extended to 26 June 2022."
Kingston will have to navigate some rough waters during those additional two years however, with Grandview Casino and Casino Casa Real combining for a HK$13.6 million (US$1.8 million) loss through September, down from gaming revenue of HK$215.7 million (US$27.8 million) in the same period in 2019. The group operates 69 mass market tables, 15 VIP tables and 262 slot machines.
Revenue from hotel operations fell 85% year-on-year to HK$15.8 million (US$2.0 million), with Grandview reporting hotel occupancy of 9% and Casa Real just 4% in that time.
Largely as a result of its Macau woes, Kingston saw its group-wide profit for the six months decline 65% to HK$169.0 million (US$21.8 million).