South Korea casino resort operator Landing International Development Ltd expects a decrease of “approximately 15 percent to 35 percent” in consolidated net loss for the six months ended June 30, as compared to the prior-year period.
The Hong Kong-listed firm said in a profit warning on Friday it expected to record a “substantial increase” – of “approximately 80 percent” in year-on-year terms – in consolidated revenue for the first half of 2021. That was despite a decline of “15 percent to 35 percent” in gaming-related revenue for the period.
Landing International developed and operates the Jeju Shinhwa World resort and its foreigner-only gaming facility, Landing Casino (pictured in a file photo), on the South Korean island of Jeju. The group is also engaged in property development.
The company said the expected increase in consolidated revenue and decrease in consolidated net loss for the six months to June 30 were partially attributable to a “boost in domestic consumption” at its Jeju Shinhwa World resort under “a series of marketing campaigns leading to the significant increase in revenue generated from [the] integrated resort segment”.
Also contributing to the improved performance were an “increase in residential property sales activities”, and a “reduction in operating expenses resulting from stringent cost controls,” stated Landing International.
The company said it planned to announce its interim results later this month.
The firm announced in May plans to raise HKD138.8 million (US$17.9 million), or HKD138.5 million after expenses, via subscription shares, for a combination of capital expenditure on existing facilities at Jeju Shinhwa World, and toward the cost of a new hotel there.
The firm said at the time the move was in anticipation of recovery in tourism later this year, with the easing of the worst effects of the Covid-19 pandemic.
South Korea – in common with many places in Asia Pacific – currently has restrictions on inbound travel by foreigners, as a Covid-19 countermeasure.
Landing International said in April its net loss for full-year 2020 was approximately HKD2.12 billion, slightly narrowed from the net loss at HKD2.13 billion in 2019.
