GGRAsia – Hoiana 1H net revenue jumps as Vietnam tourism recovers

Hoiana 1H net revenue jumps as Vietnam tourism recovers

Aug 30, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck

Hoiana Resort & Golf (pictured), a tourism complex with foreigner-only casino on Vietnam’s central coast, saw major year-on-year improvement in business performance in the six months to June 30, said casino investment business LET Group Holdings Ltd in a Tuesday filing in Hong Kong.

Total first-half net revenue at Hoiana was approximately US$47.5 million, up by nearly 560 percent compared to approximately US$7.2 million in the prior-year period.

LET Group said in its Tuesday filing that an important factor was that “due to the recovery of the Asian tourism industry in first-half 2023,” the volume of international visitor arrivals to Vietnam had “significantly increased” relative to 2022. Visitor volume to “Hoiana and the operations of Hoiana have improved in first half 2023,” the firm added.

Hoiana recorded positive adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of approximately US$10.1 million in the first half this time, versus negative adjusted EBITDA of approximately US$25.8 million in the first six months of 2022.

LET Group said in its announcement to the Hong Kong Stock Exchange that it had an approximately 34 percent indirect equity interest in Hoiana as at June 30 this year, through investment in a joint venture.

In July, outside the interim reporting period, Bloomberg had said – citing people said to be familiar with the situation – that a Hong Kong family of entrepreneurs, the Chengs, had “assumed control” of day-to-day management of the Hoiana property from LET Group.

First half casino gross gaming revenue (GGR) at Hoiana was up 687.1 percent year-on-year at almost US$113.8 million.

VIP rolling chip volume at Hoiana went up 592.4 percent from the prior-year period, to US$2.62 billion. Mass table drop rose 495.2 percent, to US$42.2 million. Electronic gaming volume climbed to US$119.4 million, a year-on-year gain of 94.5 percent.

LET Group confirmed that group-wide for the first half this year, it had swung to a HKD450.6-million (US$57.4-million) profit, compared to a HKD387.1-million loss in the prior-year period. Group-wide revenue was flat year-on-year, at HKD190.9 million.

The group also has interests in Tigre de Cristal casino resort near Vladivostok in Russia, via Summit Ascent Holdings Ltd; and a casino hotel project at Westside City in the Philippine capital Manila, via Suntrust Resort Holdings Inc.