China Star Entertainment H1 profit surges, revenue drops

China Star Entertainment said its first-half profit surged 86 percent as impairment losses and share-based payment expenses posted in the year-ago period weren’t repeated and loan interest income rose.Profit attributable to owners of the company was HK$114.8 million ($14.8 million) up from HK$62 million for the year ago period. Earlier this month the company said it expected to post a gain in interim profit of between 85 and 95 percent.

However, overall turnover at the group declined during the first half, dropping 5 percent to HK$601 million. The company said 99 percent of its income came from hotel and gaming service operations, with 1 percent from gaming promotion. Its film and property development business had a negligible contribution to the results.The company, through one of its units, has a revenue sharing agreement with SJM Holdings for the Lan Kwai Fong hotel in Macau.

The group had shared revenue and segment profit of approximately HK$598 millionand HK$128 million, from the hotel and gaming service operations, decreases of 5 percent and 6 percent respectively.Service income from mass market tables dropped 4 percent, while that from the VIP sector fell 35 percent. Income from slots however, surged 50 percent.The group had shared revenue and segment loss of approximately HK$2.5 million and HK$4.7 million from the gaming promotion operations, decreases of 33 percent and 88 percent respectively.

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