Landing Group posted a 45.1 percent increase in revenue on increased domestic demand, narrowing Jeju Shinhwa World’s casino loss for 2H2022.
Landing Casino recorded net revenue of approximately HK$32,636,000 for 2H2022, compared to the previous year of HK$58,653,000, while segment loss from the gaming business was approximately HK$49,178,000 compared with HK$247,986,000, the Group Interim report for the first half of the year shows.
Landing Group’s consolidated revenue for 2H2022 was approximately HK$691,554,000, representing an increase of approximately 45.1 percent when compared to the corresponding period in 2021 of approximately HK$476,627,000.
Landing’s non-gaming revenue was approximately HK$658,918,000, while gaming revenue was approximately HK$32,636,000, versus HK$417,974,000 and HK$58,653,000 in 2021, respectively.
Segment loss of the Integrated Resort Development was approximately HK$82,121,000 (2021: approximately HK$291,737,000).
Under a series of travel restrictions and quarantine control measures, foreigner visitation from China and elsewhere to Jeju had dropped significantly since the beginning of 2020 and remained substantially below pre-COVID-19 levels. Therefore, the performance of the gaming business remained sluggish during the Period.
The increase in consolidated revenue was mainly attributable to the increase in domestic consumption in Jeju Shinhwa World under a series of marketing campaigns leading to the increase in revenue generated from the integrated resort segment; and the increase in residential property sales activities.
For the Period, Jeju Shinhwa World generated segment revenue of approximately HK$448,664,000 (2021: approximately HK$350,659,000), which was mainly derived from its hotels, MICE events, food and beverage services, attraction theme park, water park, and merchandise sales as well as leases of retail spaces in the resort, representing an increase of approximately 27.9% as compared with the corresponding period in 2021.
The Group has yet to identify another suitable lease of land to develop an integrated resort in the Philippines to satisfy the requirements of the provisional license during the Period.
The Group will continue to explore the issue with PAGCOR for a mutually acceptable solution while adopting a cautious approach to evaluate the feasibility of relevant lease of land and development should opportunities arise.
The construction plan of a new hotel in Jeju Shinhwa World had been suspended during the Period while the Group attempts to switch its strategic plan to its property development business.
The Group is exploring the feasibility of further residential development in zone R of Jeju Shinhwa World and the construction of which is expected to be commenced in 2023 and to be completed in 2024.
In the second half of 2022, the Company will continue to progress maintenance, renovation and upgrade of facilities in Jeju Shinhwa World at a small scale.
In addition, the Company will continue to evaluate the funding needs and the financial position of the Group from time to time and will also explore fundraising and financing facilities if and when opportunities arise, the interim report read.