Macau junket operator to stay in the red
Ongoing pressure on its business in Macau, VIP junket operator Neptune Group Limited announced it expects to remain in the red for 12 months.
The Hong Kong-listed company, which is partnering with Sands Macao, Casino Grand Lisboa and The Venetian Macao to operate its VIP room, has been in the red for the fiscal year after posting a net loss of $103 million despite grossing $19.1 million in the past 12 months.
"The company's board of directors hopes to inform the company's shareholders and potential investors that the group is expected to record significant losses at the end of the year," a statement from Neptune Group Limited said.
The junket operator declared that the background of the current situation includes "slow and often delayed" receipt of funds, along with Macau's "tremendous" gaming environment. It also added that Macau's junket is reluctant to issue credit to players because "taking game losses from players tends to be slow and lengthy."
"The information contained in this announcement is based only on preliminary evaluations by the Board of Directors that refer to the unaudited integrated management accounts of the Group currently available and is not based on any information or figures audited or reviewed by the Company's auditors or the Board's audit committee," a statement from Neptune Group Limited said. "Shareholders and potential investors are advised to carefully consider the release of final results for the end of the year, which the Company is scheduled to release or is expected to release around that time."
In the first half of the fiscal year, Neptune Group reported commission revenue for VIP rolling turnover plunging 53% year-over-year to $17.1 million.