South Korean integrated resort operator Shin Hwa World has managed to reduce its loss for the first half of the year by nearly 32 percent, largely based upon an increase in its gaming revenue from Jeju Shinhwa World.
According to the group’s most recent financial results, the company saw a loss of HK$231.54 million for the period, lifted by a 25.5 percent increase in consolidated revenue – to HK$418.1 million.
The group was aided by a strong increase to HK$114.87 million in gaming revenue, from HK$23.8 million in 1H23. This was stated as being due to ‘growing visitation and the increasing rolling volume and non-rolling volume’, calling it a ‘remarkable improvement’ in the segment.
The group’s overall Integrated Resort Development segment saw a slight decrease during the period, of 2 percent, totaling HK$339.33 million, generating a loss of HK$115.41 million.
The group notes that this is partially due to ‘stiff competition from numerous hotels in Jeju’, causing pressure on room prices, as well as increased marketing efforts – including entertainment and digital campaigns.
Meanwhile, the group’s property development arm saw a 92 percent increase in profit – to HK$30.93 million, as revenue from residential properties surged to HK$64.45 million and property management revenue neared HK$6.07 million.
Looking ahead, the group notes that ‘Jeju Shinhwa World is the key to the success of the group’. It indicated that its renovation and upgrading of facilities at the property will be ongoing, and that the group will ‘organize gaming tournaments and offer entertainment and compliments for casino VIP patrons in the years ahead’.
It’s also looking forward to an opportunity to further develop a residential area on part of the Jeju Shinhwa World land (zone R) and ‘explore other opportunities to better utilize the land in Jeju Shinhwa World’.
Furthermore, the group notes that it will ‘act prudently in its future development and investment plans and maintain a healthy liquidity position’.
However, it noted that it will evaluate its financial position periodically ‘and will explore fund raising and financing facilities if and when opportunities arise’.
