Landing International pauses expansion due to losses
Casino investor Landing International has decided to suspend expansion due to the impact of the pandemic on the business.
Hong Kong.- Landing International Development has reported a net loss of HKD792.2 million (US$102.2 million) for the first six months of 2020.
According to a filing to the Hong Kong Stock Exchange, it saw a 24.5 per cent year-on-year decline in aggregate revenue for the period, to HKD262.1 million (US$33.8 million).
The firm runs the foreigner-only casino resort Jeju Shinhwa World on South Korea’s Jeju Island.
Landing International said in the filing that some of the large-scale expansion projects for Jeju Shinhwa World – including the addition of a Four Seasons Resort and a Lionsgate Movie World theme park – had been “suspended” in order for the group to “preserve healthy liquidity” amid the Covid-19 pandemic crisis.
The company said: “In response to the decreasing number of cross-border travellers, we concentrated on the local market by offering discounted family packages and promotion events.
“Our enhanced marketing strategy has been rewarded a satisfactory response with improving hotel occupancy rate since May 2020.”
Gaming revenue in the six months to June 30 was approximately HKD101.1 million (US$13 million), up 26.6 per cent year-on-year, but non-gaming revenue fell by 39.8 per cent year-on-year, to HKD161.1 million (US$20.7 million).
