After undergoing a $18.8 million initial public offering in August, Asian casino operator Silver Heritage Group Limited has announced that it is likely to “fall short” of its predicted annual revenues and adjusted earnings before interest, tax, depreciation and amortization for 2016.

The Sydney-listed firm made the revelations in a progress report issued to investors on Monday and blamed lower than expected revenues from its existing operations, which encompass the Phoenix International Club in northern Vietnam as well as Kathmandu’s The Millionaire’s Club And Casino, which is located inside the capital city’s Shangri La Hotel And Resort.

Hong Kong-based Silver Heritage Group Limited was established in 2003 and has operated in Nepal since 2012. It is currently in the process of building its 100-room Tiger Palace Resort and expects to open the $40 million first phase of the Bhairahawa-based enterprise, which is to offer a 26,597 sq ft casino floor featuring 200 slots as well as 52 gaming tables, in February.

In announcing the predicted shortfalls, Silver Heritage Group Limited declared that its operations in Nepal, Vietnam and Laos “are all cash-flow positive” but that total revenues from its Phoenix International Club had been lower than expected “due primarily to additional gaming tables not being installed on the main gaming floor by the owners of Phoenix International Club for management by Silver Heritage [Group Limited] as anticipated”.

“In addition, the current twelve gaming tables have been experiencing a lower hold percentage [of] 17.9% for the second half of 2016 to date versus 19% year-to-date and 22% long-term average,” read the firm’s progress report.

Moreover, Silver Heritage Group Limited stated that increased competition in Kathmandu had resulted in “a lower level of monthly revenues” than had been expected from The Millionaire’s Club And Casino.

“Assuming that the revenues at both Phoenix International Club and The Millionaire’s Club And Casino continue at levels experienced over the past six months for the remainder of the year, total revenues would be up to 13%, or $2.5 million, below forecast and adjusted earnings before interest, tax, depreciation and amortization would be up to 31%, or $1.4 million, below forecast,” read the report.

However, Silver Heritage Group Limited proclaimed that savings from other areas of its business “should mean that the statutory net loss after tax disclosed in the prospectus remains within the forecast of $5.3 million” while it still held cash on hand at the end of September of $24.99 million.

“This cash balance is sufficient to fund the completion of the Tiger Palace Resort in Bhairahawa and leave a working capital balance of at least $4.33 million, which is to supplement cash flow from continuing operations,” read the report.

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