Junket operator Neptune Group Limited has issued a profit warning after a junket group associated with the company received notice from The Venetian to terminate operations with the property, just over six months after the two had signed a gaming promotion agreement, according to a filing with the Hong Kong Stock Exchange.
Hou Wan, the junket operator in question, contributed ‘approximately 26 per cent of the total revenue’ of Neptune during the financial year ended June 2016, according to the filing.
The termination comes into effect August 30, according to the filing.
Neptune has notified that ‘it is expected that the intangible assets in respect of the junket business of Hou Wan would be fully impaired as a result of the Termination Notice,’ and that the company is ‘accessing the recoverability of the outstanding account receivables’ of Hou Wan.
This comes after an announcement that on May 31, another junket group – Hao Cai Entertainment Company Limited – had received notice from The Venetian of the termination of its agreement as well. Due to both terminations, Neptune reveals that ‘the Group would record an impairment of intangible assets in respect of the junket business of approximately HK$365.9 million (US$46.84 million/ MOP376.88 million)’ for the fiscal year ended June 30. In addition the group expects to ‘record a loss on disposal of an associate of approximately HK$62.9 million’ for the fiscal year and that a net loss attributable to equity holders of the company is expected for the fiscal year.
The group expects to publish its annual results for the fiscal year ‘on or about 29 September,’ according to the release.
