Sports lottery and land-based casino operator Success Universe Group Limited has issued a profit warning to investors advising that its consolidated loss for 2016 could have increased by as much as three-fold year-on-year due to the disappointing performance of its businesses.
The Hong Kong-based firm ended 2015 with a deficit of $1.5 million with its most recent announcement advising stakeholders that its Ponte 16 casino in Macau had posted lower than expected performance last year while its Chinese lottery business had wracked up decreased revenues as a result of “the voluntary and temporary suspension of the paperless lottery sales agency services”.
Success Universe Group Limited expects to publish its full financial results for 2016 in March and additionally declared in a filing with the Hong Kong Stock Exchange that it was facing an “impairment loss on the carrying value of the trademark of the group’s travel business”.
“The company is still in the process of preparing the final results of the group for the year ended December 31, 2016,” read a statement from Yeung Hoi Sing, Chairman for Success Universe Group Limited. “The information contained in this announcement is only based on a preliminary assessment by the board with reference to the unaudited consolidated management accounts of the group for the eleven months ended November 30, 2016, and is not based on any information or figures that have been audited or reviewed by the company’s auditors.”