Silver Heritage re-negotiates with Phoenix Club owners

Thursday 31st of January 2019

Australia-listed Silver Heritage Group says it has renegotiated its agreement with the owners of The Phoenix International Club, which will allow SVH to significantly reduce its fixed cost contributions in exchange for lowering its share of GGR from the property.

The Phoenix International Club is located in Bac Ninh, Vietnam, owned by Phoenix International Travel Development Co., and managed by SVH.

The company said the new agreement was put forward due to weak trading performance at Phoenix which has continued through the year-end and into January 2019.

With the new changes, SVH said it now expects earnings to improve over the coming months as a result of the reduction in fixed costs, combined with a focus on increasing footfall and drop at the property.

Over in Nepal, SVH said it has made a number of strategic changes to marketing and operations. Drop has continued to improve, with December and January's months being the 2nd and 3rd highest months since its opening.

“The board and management are focused on making further improvements to support growth, including new marketing initiatives and the opening of three VIP gaming rooms in February 2019 to further drive additional revenue at the property,” said the operator in a filing.

In Kathmandu, The Millionaire's Club & Casino Kathmandu (TMCCK) continues to perform ahead of budget, with drop and GGR so far this month already outpacing all January month results since its opening.

For the quarter ended December 31, 2018, receipts from customers reached US$6.1 million, net loss from operating activities was $1.5 million.