CY Management records a year-on-year loss of HK$21.6 million

Tuesday 26th of May 2015

CY Management Limited, a subsidiary of the CY Foundation and which provides management services to three casinos in Macau, recorded a year-on-year loss of HK$21.6 million ($2.7 million) for the year ended 31 March 2015 due to the significant amortization and depreciation of investment cost.

The company, which provides services namely to Casino VIP Legend, Casino Casa Real and Casino Grandview, along with information technology services to two other casinos in Macau, said in a filing that turnover increased substantially during the year as the performance of the casinos improved under its management.

“However, the Gaming Business has recorded a loss of HK$21.6 million...due to the significant amortization and depreciation of investment cost.”

“In addition, the recent negative impact of China’s anticorruption drive on gaming market environment in Macau hindered growth in the gaming business activities although the mass market segment of the industry is less affected.”

The company added that an impairment of goodwill of approximately HK$10.8 million was recognized in current year due to changes in market conditions.

“Nevertheless, it should be noted that the impairment is an accounting related adjustment and a non-cash item. Thus, it, will not have any impact on the cash flow of the Group. Going forward, CY Management will continue to procure new business relationship in Macau and extend its geographical coverage.”

The company said it has a business plan to expand its operation to 3,000 or more slot and multi terminal machines throughout Asia by March 2018.