Casino operator Silver Heritage Group has released its cash flow report for Q1 2020 and provided an update on the key areas of activity during the quarter.
In January 2020 the group secured additional funding of US$1m from its bondholders. On March 20 the group closed its casino operations at both Tiger Palace Resort and The Millionaires Club and Casino in Nepal following restrictions introduced by the government as a result of the coronavirus pandemic.
The following day the group suspended all hotel and other operations at its Tiger Palace Resort. The group’s operations in Nepal remain closed. The group has initiated cost reduction strategies and is ready to reopen as soon as regulations and conditions permit.
Up to the end of February 2020, the group’s Nepalese business had recorded sales revenue of US$2.22m, up 6.3 per cent on the corresponding two-month period last year, and generated an adjusted EBITDA loss of US$2,000 compared with US$73,000 in the previous year.
The shutdown in Nepal, however, is expected to have a significant adverse impact on the group’s results in the short to medium term.