Operator News
Russia – Tigre de Cristal expansion delayed until 2025 due to economic uncertainty
By Phil - 23 March 2022
Despite returning to positive EBITDA of HK$40.9m in 2021, Russian operator Summit Ascent Holdings is delaying the Phase II development of Tigre de Cristal in the Primorye Economic Zone near Vladivostok due to unknown economic changes caused by Russia’s war on Ukraine.
Whilst revenue at the casino improved by 26 per cent in 2021 to HK$266m (US$34m), Summit Ascent still recorded a loss of HK$230m (US$29m) and will delay the expansion until another three years.
The operator said: “The Group’s integrated resort Tigre de Cristal is operating in the Russian Far East and has been self-sustaining without any bank borrowings. However, we shall have to adjust our operations to the reality of a volatile business environment and try to find ways to do business within the new constraints we may face including, but not limited to, the payment platform for further capital investment for the Tigre de Cristal Phase II, loan repayment and dividend repatriation to its parent companies in Hong Kong, settlements with the overseas customers, suppliers, and service providers, and the increased operating costs due to the inflation and supply-chain disruptions.
“The Board has been closely monitoring the market conditions, and assessing the short-term and long-term implications of the geopolitical tensions, the Group’s working capital requirements as well as funding requirements for its projects under development.
“The Board will base this on the [war] and perform further assessment of its impact on the Group’s financial performance and take relevant measures.”
Cambodia-based NagaCorp has already confirmed it is indefinitely suspending the development of its project, Naga Vladivostok.
