By Violeta Prockyte
Silver Heritage Group, which owns two marquee Nepal casinos, reveals that the start of the year has been profitable. Tiger Palace Resort Bhairahawa near the border with India and The Millionaire’s Club in the capital, Kathmandu, are both said to have brought a 6.5% year-on-year increase in revenue by the end of February. The first two months of 2020 saw revenue of more than $2 million. The company’s EBITDA loss also fell to $2,000, a huge gap compared to $73,000 from the previous year.
However, the casinos were forced to close due to the pandemic outbreak on 20 March. While the decision is in line with the country’s regulations and safety measures, the company announced it expects the shutdown to have a “significantly adverse impact on the group’s results in the medium to short term”.
The company said the first quarter of 2020 also brought $2.57 million in revenue, a 41.5% fall compared to the previous year. Net cash from operating activities also decreased, earning $1.68 million, which amounts to an 11.4% decline compared to the first three months of 2019.
The temporary shutdown hinders the company’s plans for expansion as well after the group secured a $1 million loan in January. However, plans have been halted for now and there’s no immediate plan on when Nepal’s casinos will be allowed to resume operations.