New Silkroad swings to profit for 2018, casino business gains

New Silkroad swung to a profit in 2018 and posted an almost 60 percent gain in revenue on sales from its South Korean casino business, the sale of wine and Chinese baijiu and the acquisition of a P2P financing business in China.

That acquisition added about HK$153.1 million ($19.5 million) to group revenue. Gaming revenue, which represents just over 22 percent of the group total, saw an 11.9 percent increase to about $106.3 million. Profit attributable to owners of the company was $64.4 million compared with a loss of $70.9 million the prior year.

New Silkroad operates the Megaluck casino on Jeju and recently got the greenlight for an IR complex on the island. New Silkroad has a 55 percent stake in Macrolink, which was formed in 2014 to develop an IR on a 1.3 million sq.m site, a half an hour drive from Jeju’s international airport. The resort will consist of five-star hotels, with about 1,000 rooms, MICE facilities, a spa, retail, villas and condos, according to the company’s website.

“As a result of the improving Sino-Korea relationship and the opening of a new tourist complex, the numbers of visitors to Jeju had reached a record high,” it said in a filing to the Hong Kong Stock Exchange. “With effective promotion campaigns implemented, our casino saw the growth of the VIP gaming market.”