Hong Kong-listed casino developer Xinhua World Inc reported a loss of HK$338.9 million ($43.2 million) of its shareholders in the first six months of 2023. That compares with a HK$154.4 million loss a year earlier, data filed on Tuesday showed.
As a result, group overall sales fell 39.5% year-over-year, slightly below HK$418.1 million.
The company did not recommend interim dividend payments.
Shinhwa World Co., Ltd. operates a resort called Jeju Shinhwa World (photo) with a foreigner-only casino in Jeju, Korea.
During the reporting period, the group's non-game revenue was about HK$394.3 million, down 40.2% year-over-year.
Gaming revenue fell 27.1% year-on-year to HK$23.8 million. Losses in the gaming business segment were about HK$107.8 million in the six months to June 30, compared with a loss of HK$49.2 million a year ago.
Xinhua World said the increase in consolidated net losses during the reporting period was mainly due to "severe competition after easing travel restrictions and pressure to increase room prices and market share due to overseas travel by domestic customers," which led to a "decrease in revenue from the integrated resort development sector."
The company also said that factors affecting the losses included "increased operating costs due to inflation, particularly utility costs and facility maintenance expenditures, and increased employee benefits."
Shinhwa World also said that "new facilities like Premium Cinema were launched in August 2023" to enrich the experience for its customers.
"The group has requested a bid for additional residential development for Jeju Shinhwa World," it said. "This new residential development is expected to make better use of Jeju Shinhwa World's land use and expand the group's source of income in the long run."
Previously, the company was linked to plans to develop a Philippine resort complex. In July, the company said it had "decided not to ask for further extensions" of the deadline to find suitable land for the Philippine casino resort. This is a step required as a condition of the casino's temporary license it received in the Philippines.
BY: 릴게임사이트