In line with a profit warning issued on March 14 by China Entertainment Ltd, which controls Hotel Lan Kwai Fong, suffered a 49 per cent profit loss for 2015. Total profit for the year amounted to HK$107.9 million (US$13.9 million) vis-a-vis a posted profit in 2014 of HK$210.01 million. The drop, as published Tuesday in a fling with the Hong Kong Stock Exchange, is party attributed to ‘a significant decrease in revenue from service income from gaming operations as a result of the recession in the gaming industry in Macau.’ Of the total revenue recorded for the year of 2015, HK$885.5 million came from external customers in Macau, as compared to the HK$1.17 billion recorded in 2014. Service income from mass market table gaming operations accounted for the lion’s share of revenue for the year, amounting to HK$684.7 million, a 34 per cent decrease from the previous year’s HK$917.9 million recorded. Service income from VIP rooms table gaming operations in 2015 saw a significant drop from the HK$82.6 million recorded in 2014 to the HK$32.5 million recorded in 2015. Service income from slot machine operations halved, recording only 45.8 per cent of the amount made in 2014 – HK$7.27 million and HK$15.86 million, respectively. Overall, states the filing, ‘of the total revenue for the year, HK$877.9 million or 84 per cent was generated from hotel and gaming service operations.” Received profit streams from the gaming promotion business in 2015 accounted for HK$4.74 million, an HK$8,000 increase from the previous year. The second largest revenue stream for China Star Entertainment came from the sale of health products, resulting in HK$160.4 million, with the hotel accommodation side of its company coming in a close third at HK$115.06 million, both businesses seeing small but not significant reductions in their revenue compared to the previous year.
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