Landing International expects to record increase in revenue for H1

Landing International Development expects to record an increase in consolidated revenue of about 45 per cent.

South Korea.- Landing International Development has issued a profit warning to the Hong Kong Stock Exchange announcing that it expects to record an increase in consolidated revenue of “approximately 45 per cent” for the first half of the year despite a decline in gaming revenue.

The company said its consolidated net loss could decrease by approximately 65 ​​to 85 per cent for the six months ended June 30 compared with the same period in 2021. It said the year-over-year improvement was due to higher spending by South Korean customers at its Jeju Shinhwa World resort. It said growth was driven by several marketing campaigns.

Landing International also anticipated an increase in residential property sales; a drop in amortisation and depreciation costs; a decline in operating expenses “resulting from stringent cost controls”; an increase in investment property fair values; and a potential impact on the recognition of intangible asset impairments and reversal of trade receivable impairments.

In 2021, the company posted a loss of HKD1.06bn (US$134.9m). Consolidated revenue was up 71.3 per cent year-on-year to HKD1.35bn. However, gaming-segment revenue was down 52.5 per cent to HKD88.6m.

According to the Jeju Tourism Organization, the number of foreign tourists to Jeju Island was 4,574 in May; 5,922 in June; and 3,552 between July 1 and 17. Due to Covid-19 countermeasures and travel restrictions, in 2020 and 2021, the number of arrivals on Jeju Island was 212,767 and 48,278, respectively, down 87.7 per cent and 77.3 per cent.