- Legal States
Fiona Simmons March 17, 2022 3 min read
Summit Ascent Shows Confidence in Tigre de Cristal Operations
As the world seeks to cut ties with Russian entities, the Hong Kong-listed Summit Ascent Holdings is confident that Tigre de Cristal Casino in Vladivostok may emerge even stronger.
Tigre de Cristal Casino Expected to Emerge Stronger
The company, which operates the casino, has been keeping a close eye on the unfolding situation with the Russian-Ukrainian war which has created some serious financial headwinds for businesses that have opted to stay in the country amid global pressure to exit operations in the country.
Ahead of its full financial year results for 2021, Summit Ascent has issued a statement in which it expressed its confidence that the Tigre de Cristal Casino would emerge much stronger once the war is over. Summit Ascent, though, is aware that it has to keep a close eye on some key performance criteria, including the current course of the Russian ruble, interest rates, and whether the country is heading to a default.
A small improvement in the ruble trading course against the US dollar suggests that global markets are expecting Russia to service its debt payments in ruble. In a statement, Summit Ascent explained:
“The Group’s integrated resort Tigre de Cristal is operating in the Russian Far East and has been self-sustaining without any bank borrowings.”Summit Ascent
Regardless, the company acknowledged the litany of sanctions brought on against the Russian Federation and discussed whether those posed a threat to Tigre de Cristal Casino’s future. In short, the company said that should there be anything new to know, statements would be made only when and if appropriate.
Results Still Not too Bad
In the meantime, the group said that it expects to see a 26% increase in revenue for its financial 2021. EBITDA should reach HKD40.9 million ($5.2 million). The overall group loss, though, would reach HKD273.8million ($35 million) from HKD47.8 million ($6.1 million). Summit Ascent has been happy to carry on despite the difficulties.
Others, though, have been more skittish. NagaCorp announced earlier this month that it had suspended the development of its Vladivostok casino resort project. Meanwhile, Tigre de Cristal did experience some strong turbulences over the last year.
In 2020, the casino had to close because of the lack of visitors due to the COVID-19 pandemic which had much of the global air traffic on shutdown. Vladivostok promised to be a unique casino resort destination in the north, but a string of crises has now created doubt about whether the region can fulfill this status.