Hong Kong-listed Landing International Development Ltd has reported a loss of HK$2.12 billion (US$272 million) in FY2020, largely flat compared to 2019 levels due to higher non-gaming revenue supplementing a decline in the company’s gaming business.
Publishing its financial results for the year this week, Landing – which operates Jeju Shinhwa World and Landing Casino on the South Korean holiday island of Jeju – revealed a slight 3.4% decrease in revenue for the year to HK$788.0 million, citing a drop of visitation to the group’s foreigner-only casino and a reduction of property sale activities.
The revenue breakdown included net revenue of HK$186.5 million (US$24 million) from Landing Casino, down 12.5% year-on-year, with a segment loss of HK$509.4 million (US$66 million).
Jeju Shinhwa World saw a slight increase in revenue to HK$504.2 million (US$65 million) derived from its hotels, MICE events, food and beverage services, theme parks, merchandise sales and leasing of retail space, with a segment loss of HK$1.28 billion (US$165 million).
Revenue from sales of residential properties fell slightly to HK$97.3 million (US$13 million) with segment profit of HK$8.7 million (US$1 million).
“Our major business in Jeju Island, South Korea, which largely relies on entertainment and hospitality market conditions, especially the gaming business, has been inevitably affected by COVID-19,” Landing said.
“Operating hours and maximum capacity across our attractions, restaurants and facilities are being continuously adjusted according to government guidelines. In order to strengthen the epidemic prevention, measures like body temperature monitoring and enhanced disinfection cleaning have been implemented.
“With the rollout of COVID vaccines giving hope, it is expected that the vaccines are likely to ease various kind of restrictions in the foreseeable future. However, at the present time, we are still facing difficulties in anticipating the material development of COVID-19 and a wide range of public policies to be introduced globally and regionally, especially the travel restrictions, which could significantly affect our core businesses.”