Russian ruble plunges $4.5 million exchange loss at summit

Hong Kong-listed Summit Ascent Holdings, an investor at the Tigre de Crystal Casino Resort near the Russian Pacific port of Vladivostok, said it expected to post a loss of HK$16.1 million ($2.1 million) in the six months to June 30, compared with a profit of HK$85.2 million in the same period in 2022.

The company said in a filing with the Hong Kong Stock Exchange on Monday that the expected loss in the first half of the year was “mainly due to recognition of exchange losses of around HK$35.2 million [about $4.5 million] due to fluctuations in the Russian ruble exchange rate.”

On Monday, the Russian currency fell to its lowest level in 16 months against the U.S. dollar. Summit Ascent announced its results in Hong Kong dollars, the currency pegged to the U.S. dollar.

The Russian ruble is one of the worst performing currencies of 2023, according to a report by professional financial media. It has lost about 30% of its value against the U.S. dollar since January as Russia faces a decline in export revenue, along with increased revenue and military spending related to its war with Ukraine.

Summit Ascension added it recognised a foreign exchange gain of about HK$157.1 million in the first six months of 2022.

The group’s unaudited summary consolidated financial results for the six months ended June 30 are expected to be released later this month, the company said.

Tigre de Crystal was first opened in 2015 in a gambling area in Russia’s Far East Maritime Province. It is majority owned by Summit Ascent, which is controlled by Hong Kong-listed company LET Group Holdings Ltd. Shambala Casino Resort, run by a company called Shambala CJSC, was the second casino in Primorye to open in 2020.

A company called Asia Invest Group LLC is expected to begin construction of casino resorts in the Primorsky Krai in September, GGRAsia reported in July.

Hong Kong-listed Naga Corp Ltd said in March last year it would “suspend” development of its gaming resort in Primorsky Krai, citing “uncertainty” over the project. At the time, the company did not comment on the Ukraine crisis or international sanctions against Russia, but that was made by investment analysts.

BY: 안전한 카지노사이트

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