Junket fees dry up for Eternity

Service fees collected by Eternity Investment Ltd. to manage the concierge department of its remaining client junket agent in Macau plunged 57.3 percent in the first half of the year from a year earlier to HK$277,000 ($36,000) after the junket tightened credit to Chinese customers in response to signs of slowing in the mainland economy. Hong Kong-listed Eternity said it expects to report “a slight decrease” in the business for the rest of the year as well and recorded a HK$3.8 million impairment loss on its investment, driving the segment into an overall loss of HK$3.5 million. The business generated a profit of HK$11 million on revenues of HK$38.1 million last year when it still provided service to Dore Entretenimento Sociedade Unipessoal Ltd.’s room in the Wynn Macau casino.

Eternity’s latest results however were boosted by HK$36.5 million in dividend income and a valuation gain of HK$83.7 million from its investment in fellow junket investor China Star Entertainment Ltd. Eternity earlier this year moved to start selling off that investment.