New Silkroad warns of HKD47m loss
New Silkroad Culturaltainment Ltd, a Hong Kong-listed gaming and entertainment investor, warned it expects to lose HKD47m ($6.1m) for the first six months of 2020. The sum is nearly double the loss of HKD23m from the previous year.
The group operates MegaLuck casino within KAL Hotel in Jeju Island, South Korea, and it stated the losses were caused by the coronavirus pandemic and travel restrictions by the Korean Government. The group stated it “implemented cost-reduction measures to counteract the current situation”, promising to monitor the market closely.
MegaLuck casino’s revenue fell by 20% in 2019, earning HKD82.6m, which was 39% of group-wide revenue. In 2018, the casino did a little better, bringing in close to 46% of the group’s earnings.
Additionally, New Silkroad plans to build an integrated resort, claiming it’ll be one of the largest IR complexes in South Korea. In 2017, the group acquired Macrolink Glorious Hill Co Ltd, developing a complex known as Glorious Hill, which should include a casino, several five-star hotels and a theme park, as well as residential and commercial buildings. However, the project is halted due to delays in project funding.
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