Success Universe issues profit warning for 2016

Success Universe Group says it expects consolidated loss for the full year 2016 to increase as much as threefold, due to average performance of its Ponte 16 operations as well as a decrease in performance of the group’s lottery business.

According to a filing to the Hong Kong Stock Exchange on Thursday, the group said it recorded a “significant increase of the unaudited consolidated loss after tax for the eleven months ended 30 November 2016.” In 2015, the group recorded a loss of HK$11.6 million (US$1.5 million).

According to the company, the expected loss is mainly attributable to the (i) decrease of the Group’s share of profit of the associates relating to Ponte 16; (ii) significant decrease in operating revenue and increase in loss of the group’s lottery business as a result of the voluntary and temporary suspension of the paperless lottery sales agency services; and (iii) impairment loss on the carrying value of the trademark of the group’s travel business.

Its full results are expected to be published in late March 2017.