Summit Ascent Holdings Limited reported its interim half-year financial results, with total revenue up 37% year-over-year to about $22.6 million, driven by strong results from its sole Tigred Crystal venue.

The Hong Kong-listed company used an official filing (pdf) on Tuesday to detail that the rise had led to a 249% year-over-year increase in six-month adjusted earnings before interest, taxes, depreciation and amortisation, exceeding $7.6 million, while related gross profit rose to $15.7 million. The operator also explained that this latter figure was far better than the $1 million deficit accrued during the same period in 2021, and that net income attributable to nearly $10.9 million turned into a surplus.

Dominance in the country:

Summit Ascent Holdings Limited is majority-owned by LET Group Holdings Limited, formerly known as Suncity Group Holdings Limited, and Tigred Crystal Real Estate reported a 36.6% year-over-year increase in total gaming revenue in the first half of the year to slightly above $21.3 million, despite a sharp drop in "non-Russian visitors" numbers. The company also claimed that while foreign customers accounted for 54.2% of these receipts in 2019, the percentage has "falled to 20.9% and 0% in 2020 and 2021, respectively" since the coronavirus pandemic.

Current situation:

Summit Ascent Holdings Limited, founded in 1993, has a 69.66 per cent overwhelming stake in the 121-room Tigre Decristal venue located within the integrated entertainment resort area of the coastal state near the Russian port city of Vladivostok, noting that foreign gamblers did not contribute to first-half rolling chip revenue. The company went on to say the arrival and impact of the coronavirus pandemic was driven by the emergence of several "disadvantageous factors" that may have "changed from short-term to long-term".

Yields rise:

However, the operator said public market gaming table sales rose 55.1% year-over-year to nearly $10.8 million in the first half of the year, while related slot receipts rose 21.8% to about $10.5 million. The company said the associated 52.5% increase in hotel revenue left it slightly below $1.3 million in average hotel share of 28% during the week and 53% over the weekend.

Read the statement from Summit Ascent Holdings Limited...

"While the group's Tigre Dechristal integrated resort operates in Russia's Far East and is self-sustaining without bank loans, Western sanctions due to the Russia-Ukraine conflict could cause significant long-term damage to the Russian economy and tourism industry. The board has been closely monitoring market conditions, including possible geopolitical redeployment, supply disruptions, and food and energy instability, and will continue to evaluate the impact on the group's financial position and operations."

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