Success Dragon posts narrowed loss in FY17

Hong Kong-listed Success Dragon International Holdings recorded narrowed losses for the year ended March 31, 2017, totalling HK$156.2 million compared to a loss of HK$231.5 million in FY16.

In a filing to the Hong Kong Stock Exchange on Thursday, the group said the decrease in net loss was a result of a decrease in operating, administrative and other expenses from HK$174.4 million in FY16 to HK$121.9 million in FY17. Staff costs fell 38.8 percent in the year as well.

The group also said there was a decrease in the accounting loss arising from impairment of various assets of HK$73.4 million. For FY 2017, an impairment loss of approximately HK$71.2 million was recognized on the assets of the operation in Vietnam with reference to fair value appraised by an independent professional valuer, said the company.

Success Dragon generates the majority of its revenue from the management of electronic gaming equipment in Macau, which contributed to over 80 percent of the group’s revenue during the year.

“Although the overall slot machine gaming revenue in Macau declined by 3.1 percent in the calendar year 2016, with the Group’s heavy emphasis on marketing and cost control, the Group’s revenue in this segment still recorded a moderate increase of 9.2 percent and EBITDA of approximately HK$3.4 million,” noted the company.

Revenue fell slightly from HK$153.7 million to HK$151.2 million, a 1.6 percent decline year-on-year.

On Wednesday, Success Dragon announced it had terminated its Greyhound operation agreements in Vietnam.

The company noted that restrictions brought on by the recently enacted Decree No. 06/2017, which includes a cap on betting spend per-player-per-day; the inability for international simulcast; and limitations on expansion off-track betting outlets were the main reasons for the termination.