Rising Ha Long casino revenues can't save Vietnam's Royal International Corporation from widening 1Q20 losses - IAG
Wednesday 22nd April 2020
Royal International Corporation (RIC), operator of the largest casino in Vietnam's Quảng Ninh Province near Hanoi, Royal Casino Ha Long, reported a loss of VND33 billion (US$1.4 million) in 1Q20, suggesting a downward trend following a loss of VND73 billion (US$3.1 million) for the 12 months to 31 December 2019.
The loss came despite casino revenue doubling year-on-year to VND15.4 billion ($655,000), with profits hit by a 24% decline in revenues from RIC's hotel and villas to VND20.2 billion ($859,200), according to VietNamNet. RIC pointed to falling tourist numbers as a result of the COVID-19 pandemic for the decline.
Although the company's group-wide revenues held steady year-on-year, it recently halved its profit target for 2020 to US$404,000 on the anticipated negative impact of coronavirus.
As reported by Inside Asian Gaming earlier this week, Vietnam's Prime Minister Nguyen Xuan Phuc has hinted at easing social distancing restrictions in certain parts of the country although some casino operators have chosen to extend shutdowns until at least the end of the month.
RIC has seen its results rapidly decline over the past 12 months, having recorded a profit of US$731,000 in 2018 - its first full year profit since 2015.