Kingston Financial, which operates two properties in Macau, reported a steep drop in interim profit from its hotel and gaming business, but said it doesn’t expect the market to deteriorate further in the long run.
The Hong Kong-listed company, which is also involved in securities trading and financial services, said revenue from gaming and food and beverages in its casinos dropped 38 percent to HK$235.3 million ($32.7 million). Gaming revenue made up 70 percent of the total, down from 74 percent of the total in the prior year period.
“Despite the slowdown in tourist spending and China’s anti-corruption campaign, in light of the rebounding results during Golden Week in early October, we anticipate the outlook of Macau’s hotel and gaming market shall not further worsen in the long run,” it said.
As at 30 September 2015, the group had 59 tables in the two mass market halls, 14 tables in the two VIP rooms and 239 slot machines. It also had 134 live baccarat machines in the two electronic gaming halls.
“Live baccarat machines brought additional crowds to the properties, achieving synergy with the slot machine business as well,” it said.
Kingston operates the Grandview Hotel, a four star property situated in Taipa, Macau and the Casa Real Hotel, near the Macau Ferry Terminal.
Including the group’s financial businesses, earnings per share for the six months ended 30 September 2015 increased by 60 percent to HK5.32 cents. Turnover rose 41 percent to HK$1.65 billion.