Landing International Development Limited, the owner and operator of South Korea’s Jeju Shinhwa World, has issued a profit warning ahead of an expected increase in revenue and reduction in losses for the six months through 30 June 2021.
According to preliminary information filed with the Hong Kong Stock Exchange on Friday, consolidated revenue looks to have increased by around 80% due to recent marketing campaigns that saw a significant boost in domestic consumption of Jeju Shinhwa World’s non-gaming attractions. Landing also noted an increase in residential property sales.
Combined with “stringent cost controls”, consolidated loss is expected to have narrowed by between 15% and 35% year-on-year from a loss of HK$792.2 million (US$102 million) in 1H20.
Landing noted that this improvement came despite a further decline in gaming revenue from the HK$101.1 million (US$13 million) reported in the first six months of 2020. Landing Casino is one of Korea’s 16 foreigner-only casinos and has been severely impacted by global travel restrictions due to COVID-19.
It is not yet known whether the H1 losses incorporate KRW14.56 billion (US$13.4 million) in cash stolen from a Landing Casino safe by an employee in January. Most of the money has since been recovered by police although Landing is yet to receive any of those funds back.
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