Emperor Entertainment Hotel announced that the group’s net loss increased by 85.4 per cent to HK$155.7 million (MOP160.4 million/US$19.9 million) year-on-year for the six months ending 30 September 2022, as a result of the cessation of gaming operations since mid-year.
Earlier in April, the group said that they would be closing the casino located in the Grand Emperor Hotel, downtown Macau, from 27 June as they would not renew the service agreement with gaming concessionaire SJM Holdings Limited set to expire on June 26.
The group later announced that the satellite casino in Grand Emperor Hotel would be taken over and run by SJM for another six months until 31 December, as they have entered into a service agreement with SJM for the provision of the hotel rooms, catering and other ancillary services for a capped HK$21 million, with the gaming operation to be run by SJM on a free-of-charge basis.
Emperor Entertainment announced that its gaming revenue decreased by 83.7 per cent to HK$24.4 million year-on-year during the six-month period ending 30 September, due to the cessation of its gaming operations on 27 June.
As a result, the group’s total revenue dropped by 51.4 per cent year-on-year to HK$108.6 million, the company stated in a stock filing submitted to the Exchange of Hong Kong.
The tough business operating environment and one-off expenses such as severance payments that arose after the shutdown of gaming operations led to the net loss during the period increasing by 85.4 per cent year-on-year to HK$155.7 million, according to the statement.
The group currently engages in hospitality services in Hong Kong and Macau, which cover the Grand Emperor Hotel located in the central area of the Macau Peninsula, and the Inn Hotel located at Taipa without gaming facilities.
The company added in the stock filing that the service agreement with SJM is “merely an arrangement” for the group to provide the space and services to SJM in return for utility fee and hotel service fee incomes, and is “the best business opportunity for the company in the current situation”, as the use of the gaming area in Grand Emperor Hotel is restricted by the Macau government.
