Monday, August 08, 2022

Neptune considers packing up after huge loss


Junket operator Neptune Group Ltd. reported a net loss attributable to owners of HK$828 million ($103 million) for the fiscal year ended June 30 and says it's considering exiting the business due to market conditions.

The company said its poor performance was due to "the spectacular slowdown" in the local VIP gaming industry, adding that it may consider quitting if no improvements are apparent in the coming years.

“The Group may not resolutely to continue its presence in Macau VIP gaming industry anymore if this situation doesn't correct itself in coming years. Management now face pressing concerns, as scramble to stem profit slide from weak turnover and trying to maintain a healthy cash flow for exploring other business opportunities," the company said.

"But deepening economic fears about China, which culminated last six months in global market rout, we are now forcing a broad rethinking of our business strategy and plotting our profit around China's rise to some other regions in other Asian countries.”

According to its filing, which is printed verbatim above and not edited for English or spelling, Neptune saw its gaming revenue drop by around 33 percent year-on-year to HK$473.6 million, driven by the plunges in revenues generated by its three VIP rooms in the city, located in The Venetian Macao, Sands Macao and Grand Lisboa, down 38.2 percent, 32.3 percent and 25.2 per cent year-on-year, respectively.

 

 

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