Rich Goldman doubles profit in 18H2

Monday 25th of February 2019

Macau junket investor Rich Goldman Holdings saw its underlying profit almost double in the second half of 2018, despite terminating two gaming promotion agreements in the year.

Underlying profit attributed to the company’s shareholders in 18H2 reached HK$14.4 million (US$1.8 million), up from HK$7.3 million in 17H2. Total revenue reached HK$70.6 million, up 9.9 percent year-on-year.

In its gaming and entertainment business, Rich Goldman said that revenue from rolling turnover reached approximately HK$48 million in the half year, up slightly from HK$47 million for the same period in 2017.

The company said the increase is in line with Macau gaming revenue growth and said it is optimistic about the future of the Mainland Chinese tourist market as a result of increasingly convenient and better travel options.

“The tourists from mainland still dominate the source of gaming customers in Macau and the trend had been intensified by the completion of better infrastructure connecting Macau and other cities in the Greater Bay Area region during 2018. A flood of tourists is expected to be brought to Macau in the upcoming future by the shortened traveling time and closer connection. We are optimistic on the Macau gaming industry given the potential growth of the number of visitors in the future.”

The company also saw strong growth from its Hotel Operations business, which it entered into in 2017. Profit before taxation for the hotel operation business reached HK$4 million in 18H2, up 35 percent year-on-year.

“The strong improvement of the financial performance of the hotel, namely Harbour Bay Hotel, since our acquisition in 2017 indicates our management’s ability to add value on business and to look for wise investment portfolio which can deliver stable and durable returns for our shareholders,” said the company.

“We have a positive view on the tourism market in Hong Kong. Our group will keep developing the hotel operation business and take advantage of the closer connection and business partnership with the Mainland.”

In its money lending business, Rich Goldman said it has been continuing to expand the business unit, with revenue generated from the money lending business doubling to HK$9.8 million in the period.

The company’s board has resolved not to declare any interim dividend for the six months ended Dec. 31, 2018.