Emperor Entertainment warns profit to drop

Emperor Entertainment, operator of the Grand Emperor Hotel in Macau, has warned that it expects profit in the year that ended in March 2016 to decrease significantly.

The company said the decline will be due to “a loss on fair value change in investment properties and an impairment loss on prepaid lease payments, which was caused by weakening market sentiment and continuous downturn of the property market in Macau.”

However, it added these are non-cash items and will not have a direct impact on the operations of the group.

The Hong Kong-listed firm also said it expects to record an exchange loss from onshore traded renminbi deposits held by the group due to the devaluation of the Chinese currency.

Lastly, it said its business had also been affected by “a moderate decline of revenue due to general economic downturn and softened gaming sentiment.”

The company said its warning is based on a preliminary assessment of operations and its detailed results will be released in June. It gave no further details. In its interim earnings, it reported revenue down 17 percent to HKD$873.4 million ($112.5 million), with basic earnings per share of $0.09 compared with $0.20 in the year earlier period.