Hoiana reports its first positive EBITDA since opening, pushing LET Group into 1H23 profit

The Hong Kong-listed LET Group, formerly known as Suncity Group, reported a profit attributable to equity holders of HK$584.7 million ($74.5 million) for the six months ended 30 June 2023, reversing a loss of HK$253.0 million ($32.2 million) in the previous period, owing in part to the recovery of integrated resort Hoiana in central Vietnam. 

LET Group owns 34% of Hoiana via its fully-owned subsidiary Star Admiral.

Hoiana recorded its first Adjusted EBITDA profit of HK$10.1 million ($1.3 million) in 1H23, boosted by a 687% year-on-year increase in gross gaming revenues to HK$113.8 million ($14.5 million) as it entered the teeth of the COVID-19 pandemic in mid-2020 and saw its access to international VIPs diminished due to the collapse of Macau's junket industry.

Hoiana's rolling chip program generated HK$99.7 million ($12.7 million) on a 592% increase in volume to HK$2.62 billion ($334 million).

For the time, mass table GGR was HK$7.2 million ($917,500), and electronic gaming machine GGR was HK$6.9 million ($879,250), while non-gaming contributed HK$18.2 million ($2.3 million) in income, up from HK$2.7 million ($344,000) the previous year.

LET Group reported a share profit of HK$124.1 million ($15.8 million) from the Hoiana joint venture in 1H23, reversing a share loss of HK$160.3 million ($20.4 million) the previous year. However, Hoiana is "still in a net liability position with accumulated losses," and because the "carrying amount of the interest in the joint venture is reported as zero as of 30 June 2023 and 31 December 2022, respectively, the Group has discontinued recognition of the joint venture's share of loss since 1H 2022."

With Hoiana's prospects improving, LET Group recognized HK$413.2 million ($52.7 million) in a reversal of impairment losses previously ascribed to loans given to the Hoiana joint venture.

According to Inside Asian Gaming, HK$895.4 million ($115 million) in loans and interest were repaid in March, prompting LET Group to announce overnight that "the management of the Group considered the credit quality of the equity loans to a joint venture improved, and therefore the Group reversed the previously assessed significant increase in credit risk since origination."

LET Group also reported an income of HK$182 million ($23.2 million) from its majority ownership in the Russian integrated resort Tigre de Cristal, while the building of a hotel and casino in Manila is underway and scheduled to open in late 2024.

Source: Inside Asian Gaming