Landing International pauses expansion due to losses

The casino developer reported increased losses for H1.
The casino developer reported increased losses for H1.

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).

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