The Neptune Group says the Venetian Macau has terminated an accord with one of its junket operators that accounts for about 41.3 percent of group revenue. The Venetian wrote a letter to Hao Cai Sociedade Unipessoal on May 31 informing the operator of the termination. Hao Cai operates 14 VIP tables at the casino.
In a filing with the Hong Kong Stock Exchange, Neptune says as far as it is aware, two other operators representing 10 VIP tables in Sands Macau and 8 in the Grand Lisboa are operating normally.
For the year ended 30 June 2016, revenue contributed by the junket business of Hao Cai amounted to approximately HK$115.1 million ($14.7 million), while its intangible assets amounted to HK$220.9 million, representing approximately 14.6 percent of the total assets of the group.
The company is currently assessing the impact of the termination, but says on a preliminary assessment it believes that the intangible assets will be fully impaired. The company is also assessing the recoverability of about $95.1 million of outstanding account receivables.
The shares were suspended from trading on Thursday pending news and fell more than 5 percent on resumption of trade on Friday.