Success Universe Group Limited records mounting debt


In Macau and local casino firm Success Universe Group Limited has reportedly disclosed that it lost approximately $18.3 million last year due in large part to the temporary coronavirus-related shutdown of its five-star Ponte 16 Resort Macau venue.

According to a report from Inside Asian Gaming, the final depressing tally represents a decrease of almost 300% year-on-year when compared with the about $9.5 million profit the Hong Kong-listed company made in 2019 to take the combined annual deficit for itself and its Pier 16 Property Development enterprise up to $18.7 million.

Considerable credit:

Success Universe Group Limited reportedly owns a 49% stake in Pier 16 Property Development, which runs the waterfront Ponte 16 Resort Macau, with the remaining majority stake controlled by an entity of Macau casino behemoth SJM Holdings Limited. The source detailed that both of these parents moreover loaned the operator in the region of $7.6 million last year as it struggled through February’s 15-day casino shutdown and the subsequent drop in business produced by related travel restrictions, maximum capacity checks and social distancing protocols.

Expansive entertainment:

Opened in 2008 along the eastern bank of Macau’s Inner Harbour, the 408-room Ponte 16 Resort Macau features a 270,000 sq ft casino operated under a license officially held by SJM Holdings Limited, which is additionally responsible for 19 other such venues in the former Portuguese enclave including the iconic Casino Grand Lisboa and soon-to-open Grand Lisboa Palace. There had last year even been a plan to begin work on a $76 million expansion that was to have seen the 20-story property add a shopping mall and more casino space as well as a range of flood defences.

Amplifying albatross:

Success Universe Group Limited reportedly divulged that the loans it provided to Ponte 16 Property Development took the subordinate’s combined historical arears up to around $28.3 million as its adjusted annual earnings before interest, tax, depreciation and amortization plummeted by some 164% year-on-year to a loss of $31.2 million.

Reportedly read a statement from Success Universe Group Limited…

“The gaming and occupancy performance of Ponte 16 Resort Macau in 2020 was inevitably affected by the coronavirus pandemic. Due to global travel restrictions, the average occupancy rate of the Sofitel Macau At Ponte 16 Resort Macau remained low for 2020 while being at over 90% for 2019.”

Sliding subsidiary:

Success Universe Group Limited furthermore directly runs the Jade Travel Limited investments firm and reportedly pronounced that this enterprise had experienced a decline of 69% year-on-year in annual revenues to just $45.6 million. This purportedly took this subordinate into the red for 2020 to the tune of $1.4 million with its sibling property business noting a year-end loss of $10.4 million.