Kingston Financial Group feels the pinch in Macau

Kingston Financial Group, a Hong Kong-listed investment company, reported that gaming revenue from its two Macau casinos fell by 30 per cent year-on-year in the 12 months to March 31, 2016.

Gaming revenue for the company, which owns the Casa Real and Grandview casinos in Macau and offers gaming via a service agreement with SJM Holdings, declined to approximately HK$462.5m (E53.8m), compared to HK$660.2m (E76.8m) in the prior-year period.

“While there was a decrease in total gross revenue of Macau’s gaming industry, the performance in the [gaming business] segment was satisfactory and in line with the industry performance,” the firm said in the filing. As of March 31, Kingston controlled 61 mass-market and 14 VIP tables. Its casinos had an aggregate of 238 slot machines and 134 live baccarat machines in electronic gaming halls at the two venues.

The group is yet to disclose its full audit sheet for the year, but a separate filing posted after the revenue statement said Kingston expects its yearly profits to jump notably during the period.

“The group anticipates reporting a significant increase in its profit attributable to owners of the company for the year ended March 31, 2016,” it announced. The increase in net profit, according to Kingston, was primarily driven by income from securities brokerage, underwriting and placements, margin and IPO financing business.