Far East Consortium, a Hong Kong-based property development and hotel management conglomerate with global operations, recently reported a startling 67.6 percent drop in revenue from gaming operations to HK$88 million (US$11.3 million) for the fiscal year ended 31 March 2021, owing to the COVID-19 pandemic, which forced most casinos in the Asia Pacific region to close their doors indefinitely.
Far East has a 4.99 percent ownership in Australia’s Star Entertainment Group, and it owns European casino operator Trans World Corporation, which operates three casinos in Austria – all of which were acquired in 2018 when this company first entered into global markets outside of China.
With the cessation of activities in Austria, the gaming market is facing difficult circumstances. As a result, TWC received all revenue, resulting in a nett loss for FY2020 due to large losses during an extended closing period of casinos in April and June 2020. As if that weren’t enough, Far East’s Australian holdings flopped horribly after Star Entertainment Group failed to file dividends for the 2019-2021 fiscal year; segment earnings also plummeted dramatically, falling to HK$9.6 million (US$1.2 million) from HK $79 million (US$10 million).
Due to lower costs and the recovery of revenue lost due to the COVID-19 epidemic, the Far East Gaming Company had a good year in 2019. The company’s gaming segment, despite losing 20% of its total revenue this year (compared to last), is not adversely affected by these setbacks because it has been recovering since early 2020 after being closed down or allowed only limited opening hours during the disease’s peak period, which lasted 18 months.
TWC has been effective in lowering expenses and renegotiating contracts, allowing them to become profitable. This was due, in part, to the assistance provided by local governments in keeping TWC afloat during difficult times.