Shun Tak records 64pc fall in crisis

Macau gambling magnate Stanley Ho Hung-sun's Shun Tak Holdings was hit hard in the first half by the economic crisis affecting the region, posting a year-on-year 64 per cent drop in attributable profit to $45.4 million in the six months to June.

Mr Ho, group executive chairman of Shun Tak Holdings which has interests in shipping, property and the hospitality industry in Hong Kong and Macau, said the poor result was caused by the Asian downturn and ensuing currency turmoil.

Earnings per share dropped to three cents from 8.6 cents and directors have declared no dividend.

Passenger traffic on Shun Tak's Macau ferry routes during the first half of this year, a period characterised by gang violence in the Portuguese enclave, dropped 13 per cent, slightly more than the 10 per cent drop in overall passenger traffic.

On the property side, Mr Ho said the softening residential market meant the company's property division had decided to keep the last 17 units of the luxury Monmouth Place development on Kennedy Road as a long-term investment.

However, phase one of its Belcher Gardens redevelopment project was moving ahead on schedule with the first three towers to be completed by the end of 2000.

Mr Ho said the firm had applied for a land exchange with the Government in return for the right to redevelop its Cheung Sha Wan site.

Shun Tak said its hospitality operations in Macau had suffered a setback because of the general decline in foreign tourists and Hong Kong visitor arrivals.

The group's 34.9 per cent owned Westin Resort reported a decrease in occupancy of almost 20 per cent while occupancy rates at its 11.1 per cent owned Hotel Bela Vista declined 11 per cent and occupancy fell 10 per cent at its half-owned Mandarin Oriental.