GGRAsia – Jeju casino investor New Silkroad sees wider 2020 loss

Jeju casino investor New Silkroad sees wider 2020 loss

Mar 30, 2021 Newsdesk Latest News, Rest of Asia, Top of the deck

New Silkroad Culturaltainment Ltd, which has a casino business within a hotel on Jeju Island, South Korea, reported a loss attributable to shareholders – from continuing operations – of about HKD92.0 million (US$11.8 million) for full-year 2020, compared with HKD80.4 million in the previous year.

The company blamed the lacklustre performance on a lack of tourists and temporary closure of its facility due to Covid-19 countermeasures.

Revenue for the reporting period fell 44.3 percent, to HKD 117.6 million, from HKD 211.2 millionin 2019.

The group has the MegaLuck casino operation (pictured) in the Jeju KAL Hotel on Jeju Island, and distributes wine and baijiu, a Chinese alcoholic drink. Revenue from this segment stood at HKD391,000 in full-year 2020, down 99.5 percent from HKD82.6 million a year earlier.

New Silkroad told the Hong Kong Stock Exchange on Monday that its 2020 revenue had been negative affected by the “severe impact” of the Covid-19 pandemic, “resulting in a significant drop in the entertainment revenue.”

It added: “Operation at the entertainment venue has been suspended temporarily for most of the time in the last year in order to cope with the epidemic prevention measures of the local [Jeju] government.”

In its latest annual report, New Silkroad said it had “obtained” approval from the local authorities for a hotel project it planned on Jeju, known as Glorious Hill. But the development has been “delayed due to project financing obstacles,” it stated.

In 2017, New Silkroad announced that it had taken control of a firm called Macrolink Glorious Hill Co Ltd, putting money into it with a view to developing a big resort complex at Glorious Hill, including a “large-scale casino”.

In Monday’s filing, New Silkroad stated that if the pandemic “is not brought under control this year, the business prospect in South Korea is arduous.”

It added: “The group will continue to implement cost control measures in response to the adverse business environment. The management is closely monitoring, and will respond cautiously and adjust the business strategy” in a “timely” way.