Silver Heritage reports widened loss on IPO, resort opening expenses

Australia-listed Silver Heritage Group reported a widened loss for the year ended December 31, 2017, according to a preliminary annual report filed on Thursday.

While revenues from ordinary activities increased 8 percent in the year to $18.3 million, its loss widened more than two fold from 2016, reaching $14.4 million, due to IPO expenses, a one off non-cash impairment and other non-recurring costs.

Adjusted EBITDA fell 10 percent to $3 million.

The company saw the majority of its revenue come from Phoenix International Club in Vietnam, which drew in $12.2 million in revenue in the year – up 57 percent year-on-year.

Its Kathmandu casino business, The Millionaire’s Club & Casino Kathmandu (TMCCK), posted revenues of $5.2 million, down 7 percent year-on-year.

Silver Heritage said the Kathmandu market remains competitive, with one casino opened in 2017 and more slated to open in 2018.

The company also opened its new casino resort, Tiger Palace Bhairahawa last year, with the hotel portion opening in September and its casino in late December.   

Tiger Palace said the ramp up of the new casino resort has continued over the last three months – with the resort recording $117,000 in total revenue since opening. However, opening expenses of $677,000 brought it to a segment loss of $560,000 in the period.

Looking at its other business segment, Silver Heritage also noted that it continued to pivot away from its EGM leasing business in order to focus on casino operations in Vietnam and Nepal in 2017.

Total revenue from the EGM lease business was $617,000, a decline of 80 percent from $3.1 million recorded in 2016.