Sports lottery and land-based casino operator Success Universe Group Limited has released its financial results for 2016 showing that its net annual loss had widened by 364.4% year-on-year to stand at approximately $4 million.

The Hong Kong-based firm operates the 109-table Ponte 16 casino under a license held by SJM Holdings Limited and January saw it issue a profit warning to investors that had advised of the looming decline due to lower than expected revenues from the Macau casino. Success Universe Group Limited, which reported a deficit of about $862,000 for the whole of 2015, additionally declared at the time that its Chinese lottery business had seen decreased takings as a result of “the voluntary and temporary suspension of the paperless lottery sales agency services”.

Success Universe Group Limited explained that its 2016 revenues had dropped by 43.3% year-on-year to $73.75 million while its takings from Ponte 16 amounted to around $2.25 million, which represented a deterioration of 40.3%, with the property’s adjusted earnings before interest, tax, depreciation and amortization having fallen by 8.7% to $35.69 million.

“The group is aware of the challenges that lie ahead and remains cautious of the increasing economic uncertainties of the global economy but capturing the right opportunities is the key to expanding and growing its business,” read a statement from Sonny Yeung Hoi Sing, Chairman for Success Universe Group Limited. “We believe that such strategies will lead to a stronger foothold in the gaming, entertainment and tourist-related industries in the Asia-Pacific region.”

Success Universe Group Limited suspended its paperless lottery sales agency services in 2015 following a call from the Chinese government in order to allow for a regulatory overhaul of such businesses. But, the move was only designed to be temporary and the firm explained that it was monitoring the situation in hopes of soon receiving a recommencement date from mainland authorities.

“The group will closely monitor the development and wait for a further announcement on the resumption date of paperless lottery sales from the Chinese government authorities,” read a statement from Success Universe Group Limited.

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