Silver Heritage Group Ltd has reported VIP underperformance to be behind disappointing November revenue figures at the Tiger Palace Resort Bhairahawa.
The Australian-listed company stated that the casino, located on the Nepalese Indian border, saw “lower than typical hold rate” of 11 percent over the month, compared to a running average of 26 percent.
VIP play was responsible for the venue “underperforming budget,” according to a statement from the company.
November drop was “expected to be ahead of the last six month average of $1.73 million, at $1.86 million.” However, revenue did not increase from the “expected seasonally quiet October, due to the Indian Diwali holidays.”
Following the results, Silver Heritage is considering the sale of two parcels of land, one on the Tiger Palace site, and one previously earmarked for a second casino site further along the border.
The firm’s most recent filing to the ASX included mention of the “disposition of unutilised land in Bhairahawa (‘Tiger One’) and Jhapa (‘Tiger Two’), with a view to providing an additional capital buffer.” Though the flagship Tiger Palace has seen revenues flag, the Silver Heritage-managed Millionaire’s Club and Casino in Kathmandu is reportedly “ahead of budget year to date,” recording October GGR of $670,000.
The Phoenix International Club, the group’s Vietnam property, is reportedly showing “signs of recovery” despite October GGR falling from $2.49m in 2017, to $1.5m this year.
“The company is under-taking a series of initiatives to entice the high value players to return,” said the statement.