Turnover of the travel business surged 6,384.8% to reach HK$509.3 million
Ponte 16 achieved major milestones
New initiatives built a strong platform for future growth
HONG KONG, April 20 /PRNewswire-Asia/ --
Results Highlights
-- Total turnover during the period under review reached HK$627.3
million,representing an increase of 504.3% over the twelve months
ended 30 September 2007
-- Turnover of the travel business surged 6,384.8% to reach HK$509.3
million
-- Acquired the Jade Travel Group to strengthen the international network
and clientele of the Group's travel business
-- The casino operations of Ponte 16 officially commenced in February
2008. Its five-star hotel Sofitel Macau At Ponte 16 and the high-limit
betting area also opened in August and September in the same year
respectively
-- Formed strategic partnership with SBI Holdings in Ponte 16
-- Recruited Maruhan as a shareholder in Macau Success and a strategic
investor in Ponte 16
Macau Success Limited ("Macau Success" or the "Company"; Stock Code: 00487.HK), yesterday announced the consolidated results of the Company and its subsidiaries (the "Group") for the fifteen months ended 31 December 2008 (the "period under review') together with the comparative figures for the financial year ended 30 September 2007. The Board of directors resolved to change the financial year end date of the Group from 30 September to 31 December in order to enable the Group as well as the associates of the Company relating to the Group's flagship investment project, Ponte 16, (the "Associates") to have a coterminous year end date. Accordingly, the financial period under review covered the fifteen months from 1 October 2007 to 31 December 2008.
During the period under review, the turnover of the Group was approximately HK$627.3 million, compared to the twelve months ended 30 September 2007 (the "last corresponding year") of approximately HK$103.8 million. Gross profit was approximately HK$134.6 million (2007: approximately HK$95.7 million). Loss attributable to equity shareholders of the Company amounted to approximately HK$238.3 million, compared to a profit attributable to equity shareholders of the Company of approximately HK$2.3 million in the last corresponding year. Loss per share for the reporting period was 9.87 HK cents (earnings per share in 2007: 0.11 HK cents).
The substantial increase in turnover for the period under review was mainly attributable to the contribution from the Jade Travel Group in which 80% equity interest was acquired by the Group in July 2008.
The loss incurred during the period under review was mainly attributable to loss incurred by the cruise business which has been adversely affected by high fuel oil and operating costs and impairment of other receivables, as well as the loss shared by the Group from the Associates.
OPERATIONAL REVIEW
Travel Business
The Group's travel business became the major contributor to the Group's total turnover during the period under review, accounting for 81.2%, or approximately HK$509.3 million, of the Group's total turnover. That represents a surge of approximately HK$501.4 million, or 6,384.8% over the last corresponding year. Segment profit from travel business was approximately HK$2.7 million (2007: loss of approximately HK$0.5 million).
The tremendous growth in turnover for the period under review was mainly attributable to the contribution from the Jade Travel Group, in which 80% equity interest was acquired by the Group in July 2008.
In line with the Group's strategy to build a stronger platform to create synergies among the Group's core businesses, the Group acquired the Jade Travel Group through its acquisition of the entire issued share capital of Smart Class Enterprises Limited, which owns as to 80% equity interest in the Jade Travel Group, a major air travel consolidator, travel agent, tour provider and provider of related services with extensive office network in Canada and US. The acquisition of the Jade Travel Group not only has enhanced the Group's travel business platform with inbound and outbound tours to and from North America, but also facilitates cross-selling with Ponte 16, thereby broadening the customer base of the integrated casino-entertainment resort and the Group's cruise ship, M.V. Macau Success.
Cruise Business
During the reporting period, the cruise business continued to contribute stable turnover to the Group. For the fifteen months ended 31 December 2008, turnover from the cruise business amounted to approximately HK$11 8.0 million (2007: approximately HK$95.9 million), accounting for 18.8% of the Group's total turnover. Segment loss from the cruise business was approximately HK$1.7 million (2007: profit of approximately HK$32.0 million), which was mainly due to the increase in fuel oil and operating costs and impairment of other receivables during the period under review.
Investment Project -- Ponte 16
As the Group's flagship project, Ponte 16 achieved a number of milestones during the period under review. The casino operation of Ponte 16 officially commenced in February 2008. Its five-star hotel Sofitel Macau At Ponte 16 and the high-limit betting area also opened in August and September in the same year respectively. As at 31 December 2008, the casino had 97 gaming tables, eight of which were high-roller tables, plus 278 slot machines.
As the only integrated casino-entertainment resort featuring historical and cultural elements in the Inner Harbour of Macau, Ponte 16 has been well-received by tourists from all over the world. During its first 11 months of operations, over three million patrons visited Casino Ponte 16. The average number of visitors per day since the opening of Ponte 16 was around 10,000 with the highest number of visitors recorded in one single day amounted to 30,000 during the Chinese New Year period in 2008. Average daily mass drop during the period was approximately HK$13 million. With the opening of the VIP hall of the casino and the VIP mansions, The Mansion at Sofitel, at Sofitel Macau At Ponte 16 in the second half of 2009, the management of Macau Success expects the performance of the casino to be improved further.
Managed by the world-renowned hotel management group Accor, Sofitel Macau At Ponte 16 has 408 guest rooms, including 363 guest rooms, 26 suites and an exclusive block of The Mansion at Sofitel with 19 units. Occupancy rate has shown a steady growth since its opening in August 2008, and management of the Company expects occupancy rate to be improved further with the opening of more new amenities in the future.
Management of the Company believes the unique attractions of Ponte 16 and the marketing efforts of both Ponte 16 and the Accor Group would stand Ponte 16 in good stead for growth and become the Group's primary growth driver in the foreseeable future.
STRATEGIC PARTNERSHIPS
During the period under review, the Group made several strategic moves to build a stronger business platform to create synergies among its core businesses. Besides acquiring an 80% stake in the Jade Travel Group in July 2008, the Company also in the same year in August established a strategic partnership with SBI Macau Holdings Limited, a wholly-owned subsidiary of SBI Holdings Inc., one of the largest venture capital firms in Japan in relation to the future investment or carrying on of any casino and related entertainment and resort business as well as real estate business in Japan. In October 2007, the Company recruited Maruhan as a shareholder in Macau Success and a strategic investor in Ponte 16. These alliances have effectively created a strong foundation for the Group's future growth.
PROSPECTS
Looking ahead, the Group will continue to adopt its three-pronged strategy to maximise its growth potential. The Group will focus on developing the travel business into a unique platform to create synergies among its core businesses: travel, cruise, gaming and entertainment. With an extensive network in Canada and US, the Jade Travel Group is expected to bring synergetic benefits to the Ponte 16 project. The Group will further leverage on the extensive experience and connection of its Japanese partners to expand the Group's travel and gaming businesses to Japan and Taiwan markets. The expanded travel platform and network can also enrich customer mix of Ponte 16.
As Ponte 16 is the flagship project of the Group, Macau Success will take proactive measures to increase traffic to Ponte 16. Maruhan's involvement will induce ample sources of Japanese and Korean visitors and further broaden the Group's customer base. Ponte 16 will also benefit from the Macau government's policies and plans to preserve and revitalize the neighborhoods of Ponte 16 which is Macau's historic centre.
Commenting on the business outlook of the Group, Mr. Yeung Hoi Sing, Sonny, Chairman of Macau Success Limited said, "We are upbeat on the prospects of Macau Success. With our enhanced and diversified platform, Macau Success is in a good position to weather the challenges ahead and to seize upcoming opportunities. We will continue to adopt our three-pronged strategy and further explore gaming and entertainment business opportunities in the Asia-Pacific region to stride towards our goal of becoming a major player in the gaming, entertainment and tourist-related businesses in the Asia-Pacific region."
About Macau Success Limited
Macau Success Limited (Stock Code: 00487.HK), being the flagship of Success Universe Group, is currently involved in cruise leasing and management business, travel business, and is actively expanding its business in gaming, entertainment and tourist-related industries in Macau.
The Company owns a 9-deck cruise ship, M.V. Macau Success, which is based in Hong Kong. The ship features a world-class casino and various spectacular entertainment facilities.
The Group's travel business spans across Asia and North America. In addition to Travel Success Limited and Travel Success (Macau) Limited which Macau Success owns and operates in Hong Kong and Macau respectively, the Group also owns 80% of the equity interest in the Jade Travel Group which conducts the business of air travel consolidator, travel agent, tour provider and provider of related services in Canada and the United States of America. The Jade Travel Group has offices located in Vancouver, Calgary, Toronto, Montreal in Canada and New York in US.
The Company is actively developing its flagship project in Macau, Ponte 16, in partnership with SJM - Investimentos Limitada ("SJM - Investimentos"), an indirect wholly-owned subsidiary of SJM Holdings Limited (Stock Code: 00880.HK). Ponte 16 is 49% owned by a subsidiary of the Company and 51% owned by SJM -- Investimentos. Commenced operations in 2008, Ponte 16, a world-class integrated casino-entertainment resort, comprises a five-star luxury hotel -- Sofitel Macau At Ponte 16, a casino and renowned restaurants in Phase 1 and 2. Recreational facilities, a shopping arcade and an European themed promenade will be opened in Phase 3.
For investor and media enquiries, please contact:
Macau Success Limited
Susanna Poon
Tel: +852-3101-8175
Email: susannap@successug.com
Natalie Leung
Tel: +852-3101-3095
Email: nataliel@successug.com
Hill & Knowlton Asia Ltd.
Deborah Tsui
Tel: +852-2894-6322 / +852-9372-2226
Email: deborah.tsui@hillandknowlton.com.hk
Carol Mak
Tel: +852-2894-6283/ +852-6126-5261
Email: carol.mak@hillandknowlton.com.hk
