Rich Goldman issues profit warning ahead of full-year results

Casino junket operator Rich Goldman Holdings has issued a profit warning regarding its upcoming financial results for the year ended 30 June, stating that the company is set to record a loss of approximately HK$21m (£1.9m/€2.2m/$2.6m).

This would be an estimated increase of 74.0% compared to its full year 2020 results, which recorded a loss of HK$81m for the business that organises VIP junkets at a number of Asian casinos.

The company’s Board issued the warning to shareholders based on a preliminary assessment of its consolidated management accounts.

This took into consideration several aspects of business. Impairment loss on properties is expected to decrease by HK$44m in comparison to FY2020. Fair value loss of the group’s investment properties is also expected to decrease, this time by HK$13.

An absence of amortisation of intangible assets from Rich Goldman’s gaming and entertainment business is also set to affect the overall loss.

This loss is expected to be offset slightly by an absence of impairment losses, a HK$5m increase in administrative expenses, and a HK$6m rise in income tax expense.

Rich Goldman Holdings stressed that this number may change before the official results announcement, which is due by the end of September 2021.

The business also announced a profit warning earlier this year in regards to its H1 results.

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