Summit Ascent Holdings reports loss due to pre-opening expenses

Monday 21st of March 2016

Summit Ascent Holdings, operator of Tigre de Cristal, located in Vladivostok, Russia, reported a loss for the year attributed to owners at HK$85.4 million (US$11 million), according to a filing to the Hong Kong Stock Exchange.

The loss was expected for the company, headed by Lawrence Ho, as it celebrated its Grand Opening on Nov. 11, 2015, and much of the loss incurred during the year was mainly due to the group’s share of pre-operating expenses.

The group, which owns 60 percent of the gaming and hotel operations at Tigre de Cristal, generated an adjusted EBITDA of HK$14.3 million between its test launch on Oct. 8 to Dec. 31, 2015.

According to Union Gaming, early seasonal trends suggest the winter months will see the mass market floor dominated by locals.

“Mass market trends seem to confirm our thesis that the cold weather months would result in a customer base that is primarily local.”

The analysts also add that since the opening of the VIP segment in November, rolling chip volume has increased sequentially every month.

Summit Ascent Holdings chairman, Lawrence Ho, says management will continue to ramp up business and month-on-month improvements have been encouraging. “We expect to be running at close to optimal levels on a ramped-up basis sometime during the summer of 2016. We are further encouraged by the month-on-month improvements seen thus far during the winter season.”

Bricks & Mortar Earnings & Filings Vladivostok