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LET Group cuts annual losses, opens Manila site at end of 2024

Hong Kong-listed LET Group Holdings Ltd, an investor in a number of Asia-Pacific casino projects, reported an annual loss attributable to shareholders of less than HK$488.8 million ($52.1 million) in 2022 and a loss of about HK$527.5 million a year earlier.

The board did not recommend paying the final dividend in 2022 under the 2021 approach.

In a filing on Thursday, the company said its “major focus” was to develop a casino hotel for the West Side City Project in the Philippine capital Manila through its subsidiary SunTrust Resorts Holdings.

“The Philippine team is actively recruiting field-experienced game managers to realize this vision,” LET Group said. 파친코

It added: “Since the completion of the Podium level construction, where the main gaming area will be located, efforts have been central to the construction of the hotel tower, with soft openings beginning before the end of 2024 and planning a grand opening in 2025

According to the documents, the complex will have a five-star hotel with 450 rooms, about 300 game tables, and more than 1,300 electronic game consoles.

Regarding Vietnam’s Hoiana Casino Resort, the LET Group said the complex’s second phase plan was “in progress” and the land site was “in preparation for development.” The Hoiana Project opened in mid-2020 with a foreigner-only casino.

LET Group’s 2022 losses were attributed entirely to equity holders, the costs and costs of “mainly” ongoing operations, i.e., “financial costs of about HK$195.1 million, joint venture loss contributions of about HK$160.9 million, joint venture… and loss of equity loan impairment due.”

The loss was partly offset by a profit of about HK$12.2 million and a discontinued operating profit of about HK$138 million in connection with changes in the fair value of derivative financial instruments, the company said. It included disposal profits of approximately HK$196.5 million.

Consolidated Adjusted Earnings Before Interest, Taxation, Depreciation and Amortization (EBITDA) from Continuous Operations were approximately HK$77.5 million, compared with negative earnings of approximately HK$13.3 million in fiscal 2021.

Nevertheless, LET Group reiterated a previously published “continued concern” warning about its 2022 performance.

As of Dec. 31, the company held outstanding liabilities, including bond payments reclassified from maturing convertible bonds, at approximately HK$226.4 million in outstanding principal due on Aug. 28, 2022 and Dec. 7, 2022, respectively.

“The sufficiency of working capital to meet the group’s current obligations over the next 12 months from December 31, 2022 will depend on the group’s ability to generate adequate funding by successfully extending or renewing outstanding bonds or by disposing of non-core assets,” LET Group said

It added: “These conditions represent significant uncertainty that could give significant doubt to the group’s ability to continue as an ongoing concern.”

In a filing on March 19, LET Group cited shareholder loans and the resulting benefits provided to Vietnam’s Hoiana casino resort, according to its annual report. The company said it received repayment totaling around $114.8 million, including interest, in connection with what it called “overlending.”

Hong Kong-listed subsidiary Summit Accent Holdings Limited, the 77.5% owner of Russia’s Far East Vladivostok’s Tigre de Crystal Casino Resort, contributed approximately HK$372.3 million in game and hotel operating revenue and total game revenue to its parent company in fiscal 2022, LET Group said in a filing Thursday.

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