Success Dragon widens loss in FY16

Casino services firm Success Dragon International Holdings posted a widened net loss of HK$231.5 million (US$28.8 million) for its fiscal year ended March 31, 2016.

According to the filing to the Hong Kong Stock Exchange, the results ompares to a net loss of HK$47.3 million in the year before.

Total revenue was HK$153.7 million for the fiscal year, down 14.6 percent compared to HK$180 million in the previous year.

The decrease was attributed to a “drop in the performance in the outsourced business process management and the decline in revenue and margin for the packaging products business,” said the firm.

Revenue from outsourced business process management declined 10.9 percent year on year to HK$119.8 million, which recorded a loss of HK$113.9 million in FY2016. “This significant increase in loss was mainly due to the increase in impairment of goodwill and intangible assets.”

“While the challenge in the Macau gaming industry may continue to exist in the coming year, the Group will continue to improve and enhance the operating efficiency in the casinos in which we currently provide management services,” said the firm, adding it has now been actively seeking to expand this business in other countries.

“Apart from the business in Macau, the Group has been actively seeking opportunities to expand this segment of business in other emerging countries, with the first country being Vietnam.”

“The entering into of the agreements is expected to broaden the source of revenue and reinforce the Group’s expansion plans,” the firm added.