Australia-listed gaming operator Silver Heritage Group said all casino operations at Phoenix International Club (pictured) near Hanoi, Vietnam, had been “suspended” since Friday morning.
“The company has been notified by Phoenix’s general manager that table games are no longer included in the amended certificate of investment and that the casino will be closed indefinitely,” Silver Heritage said in a filing with the Australian Stock Exchange on Friday.
Phoenix’s casino operations accounted for about 45% of Silver Heritage’s unaudited revenue for the year ended December 31, 2018, according to the filing.
“The Board is conducting a review of the legal basis on which the notice was issued, the rights and obligations of the Company under the Entertainment Services Agreement between the Company and Phoenix owners, and its impact on the Company,” Silver Heritage said.
The company voluntarily asked for a stock trading suspension on Wednesday and received approval.
Silver Heritage previously indicated revenue from Phoenix casino operations was “below budget expectations.” The company told the exchange in January that weakness in Phoenix casino trading results persisted in the fourth quarter and continued in the first month of 2019.
The group said it had “re-negotiated and revised” the agreements it had reached regarding Phoenix at the time, adding that it “expects performance to improve in the coming months.”
Silver Heritage also runs purpose-built flagship casino property Tiger Palace Resort Bairahawa and manages game operations at a hotel in Nepal’s capital, Kathmandu.
In a filing on Friday, the company said it had “found accounting irregularities” in its recent business in Nepal.
“The limited investigation so far has shown that it is a matter related to accounting, and specifically, the method used to change the treatment of previously written amounts to reclassify costs at the local subsidiary level,” Silver Heritage said.
“The cheating is essentially largely non-cash and the cash cost to the business is about $15,000,” it added.
The boutique casino operator reported a financial first-half loss of just under $9.94 million in September after providing income tax and non-controlling interest, compared with $3.52 million a year earlier. Phoenix International’s first-half revenue was just $5.93 million, the company said at the time.
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