Hong Kong-listed casino investor Landing International Development Ltd saw its first half profit jump 478 percent year-on-year, supported by a significant increase in revenue contribution from the firm’s gaming business on Jeju island, South Korea. Such profit was approximately HKD280.6 million (US$35.7 million), compared to nearly HKD48.6 million in the first half of 2017, said the firm in a Thursday filing.
The company reported revenue of HKD1.75 billion for the first six months of 2018, up 360 percent from the prior-year period.
“This significant increase in revenue for the period was mainly attributable to the revenue contribution from the gaming business,” following the relocation of Landing Casino from Hyatt Regency Jeju Hotel to the firm’s Jeju Shinhwa World casino resort on February 25, 2018, Landing International said in its latest filing.
For the six months to June 30, Landing Casino (pictured) recorded gross gaming revenue of HKD2.41 billion, compared to HKD174.5 million a year earlier. Landing International paid a total of HKD1.0 billion in rebates, commissions and allowances to customers and gaming counterparties during the reporting period, compared to nearly HKD37.4 million in the prior-year period.
Since its relocation on February 25 and until June 30, the casino at Jeju Shinhwa World recorded total rolling volume of approximately HKD66 billion and a hold rate of 3.2 percent, said the firm.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) from the group’s operating segments were slightly above HKD764.7 million in the six months to June 30. The company had reported a loss before interest, taxation, depreciation and amortisation of HKD45.0 million for the first half of 2017. The firm’s adjusted EBITDA margin from all operating segments stood at 43.6 percent in the first half of 2018.
“Jeju Shinhwa World had a remarkable performance since its opening and it is a game changer in the industry,” said Yang Zhihui, chairman and executive director of Landing International, in a prepared statement included in a separate press release published on Thursday.
“The team will continue to work tirelessly to ramp up the businesses and operations to strengthen Jeju Shinhwa World’s reputation as the largest family-oriented premium integrated leisure and entertainment resort in Northeast Asia,” he added.
In the first half of 2018, Landing International’s non-gaming revenue was approximately HKD347.4 million, up 42.5 percent from a year earlier.
The Hong Kong-listed firm is to open today (Friday) an outdoor entertainment area called “Shinhwa Waterpark” at Jeju Shinhwa World. The waterpark features 13 indoor and outdoor pools, including an artificial wave pool, slides, outdoor cabanas and sauna facilities, a company representative told GGRAsia earlier this week.
Landing International is also launching on the same day an exhibit at the resort of characters from “Transformers”, a series of American sci-fi fantasy action films.
The company has been launching non-gaming elements at its Jeju resort in stages. Landing International is looking to open a self-branded hotel at the resort under the moniker Shinhwa Resort – featuring approximately 540 rooms – in the fourth quarter this year. Together with Marriott Resort, Landing Resort and Somerset Service Condominiums, Jeju Shinhwa World will offer over 2,000 rooms by the end of this year, according to Thursday’s filing.
By 2020, the group aims to open a Four Seasons Resort and Spa, with about 200 guest rooms, and a theme park called Lionsgate Movie World.
The Hong Kong-listed firm announced last week that the Philippine Amusement and Gaming Corp (Pagcor) had granted a provisional gaming licence to its wholly-owned unit Landing Resorts Philippines Development Corp. The permit is “to operate a casino at [the firm's] integrated leisure and entertainment resort within Entertainment City,” in Metro Manila.
The company said there would be a ground breaking ceremony on August 7 for the casino project, with the firm expecting to begin operations “in early 2022”.
In Thursday’s release, the company announced that it had appointed Mabel Lee Kim Lian as the group’s president for international marketing and business development. Ms Lee “shall be responsible for all aspects of the group’s international marketing and business development of its integrated resorts,” said the firm.
Ms Lee was described in the release as an “industry veteran with more than three decades of relevant experience”. She previously held senior management positions within international gaming groups, including at Caesars Entertainment Corp, MGM Resorts International, Wynn Resorts Ltd and Genting Singapore Ltd, according to the release.
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