GGRAsia – Jeju Shinhwa World operator 1H loss soars as revenue dips

Jeju Shinhwa World operator 1H loss soars as revenue dips

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

Hong Kong-listed casino developer Shin Hwa World Ltd reported a loss attributable to shareholders of HKD338.9 million (US$43.2 million) for the first six months of 2023. That compared with a HKD105.4-million loss in the prior-year period, according to a Tuesday filing.

The result was on group-wide revenue that declined 39.5 percent year-on-year, to just below HKD418.1 million.

The company did not recommend the payment of an interim dividend.

Shin Hwa World Ltd runs a resort called Jeju Shinhwa World (pictured) with foreigner-only casino in Jeju, South Korea.

During the reporting period, the group’s non-gaming revenue stood at approximately HKD394.3 million, down 40.2 percent from a year earlier.

Gaming revenue fell 27.1 percent year-on-year, to HKD23.8 million. Segment loss from the gaming business was approximately HKD107.8 million in the six months to June 30, compared to nearly HKD49.2-million loss a year ago.

Shin Hwa World Ltd said the increase in consolidated net loss for the reporting period was mainly attributable to a “pressure on the room price and occupancy rate due to intense competition and domestic customers travelling abroad after the easing of travel restrictions,” which led to a “decrease in revenue generated from the integrated resort development segment”.

The company also said that, among the factors impacting its loss, was an “increase in operating expenses resulting from inflation, particularly utility costs and spending on facility maintenances, as well as an increase in employee benefit expenses”.

Shin Hwa World Ltd also said that in order to enrich the experience to its customers, “new facilities, such as a premium cinema … were launched in August 2023”.

“The group has invited tenders for the construction contract of a further residential development … of Jeju Shinhwa World,” it stated. “It is expected that the new residential development may better utilise the use of land in Jeju Shinhwa World and will broaden the income stream of the group in the long run.”

Previously, the firm had been linked with a plan to develop a Philippines resort complex. In July, the firm said it “decided not to seek further extension” of a deadline to find suitable land for a Philippines casino resort, a step required as a condition of a provisional casino licence it received in that nation.