Hong Kong-listed New Silkroad said revenue at its South Korean casino, on Jeju island, posted a 16.2 percent gain in revenue in the first half, driven by VIP gamers.
The Megaluck casino generated a total of HK$63.1 million ($8 million), accounting for 43.2 percent of the group total. Overall revenue declined 3.1 percent to $146.2 million due to a decline in its wine and Chinese Baiju business.
Gross profit from the casino business jumped 56.3 percent to $18.9 million, boosted by “successful VIP gaming campaigns,” it said.
The loss attributable to owners of the company from continuing operations increased by 20.6 percent to approximately $17.6 million.
Despite strong growth in the first half, the company said it remained “conservative” about the future trend due to political tension between South Korea and its neighbouring countries and a change in the casino management team.
The company said it will begin the funding process to develop phase one of a second Jeju casino, the Glorious Hill project, following development approval from the governor granted in March.
“The project comprised three phases with the phase one development consisting of the construction of a five-star hotel with more than 580 guest rooms which will be equipped with a wide range of entertainment and recreation facilities, restaurants, high-end shops and hydrotherapy spa.
“In view of the positive outlook of Jeju tourism, it is expected that the Glorious Hill project could capture the rising demand from the tourism market.”