Summit To Reach $1.5M Profit In 2022, Partners Worry

Hong Kong-listed Summit Ascent Holdings, an investor at the Tigre de Crystal Casino Resort (pictured) near the Russian Pacific port of Vladivostok, reported a profit of HK$11.8 million ($1.5 million) to its shareholders in 2022. That compares with a loss of close to HK$230 million in 2021, according to Wednesday's filing.

The company said it recognised HK$136.9 million in impairment losses for "property, operating rights and equipment" in 2021, while no such impairment losses were recorded in 2022.

The improved earnings came in at HK$372.3 million, up 40.2% year-over-year on revenue from hotel and game operations.

No dividends or offers were made to ordinary shareholders for the year ended December 31, 2022. Summit Ascent is a subsidiary of Hong Kong-listed LET Group Holdings Ltd., formerly Suncity Group Holdings Ltd.

Summit Accent reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HK$155.1 million in 2022, compared to HK$40.9 million in 2021.

"Strong financial results aside, the Russia-Ukraine conflict continues to pose operational challenges to the group," Summit Ascent said, adding that international flights from "major international destinations" had not resumed as of the report's date.

Tigre de Cristal's second phase of development, which originally planned to nearly double the complex's capacity and off-game amenities, remains "suspended to minimise the group's capital spending and commitments."

"The increased geopolitical risk from the Russia-Ukraine conflict has adversely affected global economic conditions, which makes it "extraordinarily difficult to determine the return on investment" for Tigre de Crystal's expansion," the company said.

"The Company is not only looking for potential strategic local partners in Russia's Far East that can create value in terms of integrated resort operations, but is also exploring alternatives," it added

Summit Ascent said the group's overall revenue improvement over 2022 was "mainly attributed to the local Russian mass table and electronic gaming business."

Net profit from the gaming business rose 37.3% year-over-year to HK$340.9 million.

Summit Ascent posted zero revenue from its rolling chip business in 2022, a segment that "was primarily aimed at foreign players," the company said.

The figures, however, showed public market table sales rose 48.5% year-over-year to HK$168.7 million, while electronic game sales rose 27.8% to HK$172.2 million.

"Overall, we are excited to witness a full recovery in the domestic mass table and electronic game business in 2022," the company said in its earnings filing.

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