Rebranded SunCity warns of further losses
Troubled former junket operator Leisure Entertainment Taste (LET) Group Holdings, the rebranded SunCity organisation, has warned of large losses to come ahead of the business’s H1 financial report on 29 August.
LET has announced that it expects a loss of HK$$387.1m ($49.3m/ £41.8m/ €49.3m) for the six-month period ending 30 June. This compares with the HK$251.1m profit the business made in the same period the previous year.
The business blamed the suspension of its junket operations in the period following the arrest of the group’s chairman Alvin Chau on criminal charges. The segment was officially discontinued from 1 April 2022.
Junkets had previously been the group’s primary business, but a combination of the criminal scandal, the market situation in Macau and a general crackdown on the junket sector led to the organisation to wind-down all operations in the segment.
The group’s integrated resort business, while impacted by continuing Covid-19 restrictions in its Asian operations, are expected to see revenue increases of 31.7%. This is mainly attributable to revenue increases in its integrated resort in Russia.
In July, the business announced the change of name to bring “a new atmosphere to the company’s corporate image and identity.” Following the halt of its junket operations, the group’s revenue was primarily the result of the company’s four integrated resorts,
In March, the business warned of a “ significant doubt on the group’s ability to continue as a going concern,” after a full year net loss of HK$646.2m for 2021.
The crisis prompted the board in April to announce an action plan to “focus on survival.” This involved “intense cash preservation” and “uncompromising cost-cutting” to save the business.