Operator News
Russia – Summit Ascent issues profit warning due to variations in the Russian ruble
By Phil - 16 August 2023
Summit Ascent Holdings, operator of the Tigre de Cristal Casino in Russia’s Primorye region, has issued a profit warning stating it expects to see a loss attributable to owners of the company of HK$16.1m (US$2m) for the first half of the year due to fluctuations in the value of the Russian ruble.
This compares to a profit of HK$85.2m for the same period in 2022.
It said: “The Board wishes to inform the shareholders of the company and potential investors that, based on the preliminary review of the group’s latest unaudited consolidated management accounts for the six-month period ended 30 June 2023, the group is expected to record a loss attributable to owners of the company of approximately HK$16.1m for the six-month period ended 30 June 2023 as compared to the profit attributable to owners of thecompany of approximately HK$85.2m for the corresponding period in 2022. The expected loss attributable to owners of the company for the six-month period ended 30 June 2023 is mainly due to the recognition of exchange losses of approximately HK$35.2m caused by the fluctuation of the Russian Ruble exchange rate, whereas exchange gains of approximately HK$157.1m were recognised for the corresponding period in 2022.”
The company is still in the process of finalising the unaudited interim results for the six-month period ended 30 June 2023. The information contained in this announcement is only based on the preliminary assessment with reference to the information currently available to the management which has not yet been audited or reviewed by the Company’s auditors and/or the audit committee of the company. The financial results for the six-month period ended 30 June 2023 are expected to be announced in late August 2023.
In July, Summit completed the takeover of an undeveloped property in Okinawa, Japan, from parent company LET Group for HK$280m ($35.77m) for LET Group’s share in the project as well as the 49 per cent stake of other shareholders. An additional $25m ($3.19m) has been set aside to desig and plan the project.
