Silver Heritage Group Cuts Costs as COVID-19 Crisis Bites

Silver Heritage Group has begun "cost reduction strategies", according to the company's latest filings.

The boutique casino firm didn't specify what the measures were, but it was reported in an article on GGRAsia that its casino and hotel operations are "ready to reopen as soon as regulations and conditions permit".

Silver Heritage owns and runs the Tiger Palace Resort Bhairahawa on Nepal’s border with India, which launched in November 2017. The Hong Kong-based firm also operates the Millionaire's Club and Casino in Nepal's capital, Kathmandu.

Both operations completely shut down on March 21 as part of measures to contain the COVID-19 pandemic.

At the end of February, the latest company filings showed a recorded revenue of $2.22 million, up 6.3% compared to 2019. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the period, though, produced a loss of $2,000.

However, that was far better than the negative EBITDA of $73,000 in the prior-year period.

Looking solely at first-quarter cash flows, Silver Heritage declared recorded revenue of $2.57 million in the first quarter of 2020, down 41.5% from 2019. Net cash from operating activities stood at $1.68 million, a decline of 11.4% from the first three months of 2019.

In January, Silver Heritage secured a $1 million loan from its majority bondholders. The money was to be used for working capital.

The group has struggled in recent years with various troubles, including the closure of its Vietnam casino operations, multiple resignations from its board of directors, accounting irregularities, a dispute with its Nepalese partner and suspension of trading on the Australian stock exchange.