After the completion of a review on the recent trading performance of its properties the company provides a trading update. A recent significant entry fee along with increased competition in the area has resulted in Gross Gaming Revenue in October being approximately US $1.5m vs the YTD average of US $2.49m per month.
The company’s Phoenix’s operations have come in below budget expectations recently. The entry fee has been removed after discussions with the owners of the resort and the company is contracting a series of initiatives to tempt the high value players to return, with results to 28th November already at approximately US $1.9m the November results to date have shown signs of recovery. Under its agreement the Company earns approximately 43% of GGR.
Ahead of the last 6-month average of US $1.73m at approx. US $1.86m per month Tiger Palace’s November drop is expected, after an expected seasonally quiet October due to Indian Diwali holidays, however, the casino has experienced a lower than typical hold rate of 11% in November against the 6-month average of 26% due to VIP play. Budget for November, this reduced hold rate has resulted in the casino underperforming.
Ahead of budget year to date TMCCK continues to trade and has achieved a record month of Gross Gaming Revenue in October of approximately US $670,000. At TMCCK the company earns 100% of GGR. The Company has finsihed review of its operations following the recent CFO appointment. For improvement in the marketing and commercial aspects of its operations this review has identified a noteworthy opportunity.
The company has recently appointed CFO following which the company has completed a full review of its operations. For improvement in the marketing ad commercial aspects of its operations this review has identified significant opportunity. The company has also commenced a series of operational and marketing changes because of the result of this review, including the employment of additional growth focused resources to maximize returns from the properties it holds.
The company is taking several initiatives to release capital out of its asset base while it implements these operational and marketing changes, including the disposition of unutilized land in Bhairahawa and Jhapa intending to provide an additional capital buffer. The company is considering few options to enhance shareholder value and has begun discussions with potential strategic and industry partners. It also intends to provide full year results announcements and a further update to the market along with the December quarter-end.
Silver Heritage Group Limited (ASX: SVH) was trading at a flat market price of $0.020 as at the end of November 30, 2018.
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