Biggest casino in Vietnam’s Northern province reports losses

Royal International JSC (HoSE: RIC), operator of the Royal Casino in Ha Long city, has set 2020 profit target of $815,000 on $14.4 million revenue, much lower than its income in first three quarters of 2019.

In particular, the hotel - villa service is expected to bring $5,486 million in revenue and $517,000 after-tax profit. Revenue and profit from the casino business is estimated at $8.8 million and $298,000 respectively.

The 2020 profit target is much lower than the figure of 1.65 million placed for 2019. The company has been undergoing challenges. In the previous 7 quarters, there were 4 quarters, the company reported losses.

In first nine months of 2019, the casino reported accumulated losses of nearly $3 million in a revenue of nearly $7 million, down more than 13% compared to the same period of 2018.

The past year was not the first year the company reported losses. In 2014 this company reported a loss of over $6.5 million.

In 2015, thanks to income of more than $13.3 million compensation related to the company's assets, Royal International reported a profit of over $4.36 million. However, in 2016 to 2017, the company continued report a loss of $813,000 and $5.7 million respectively.

For the losses in 2017, the company said it had two large agents, Long Bay Agent and Kim Long Entertainment Group. Since August 2017, these two agents had almost no customers, leading to revenue drop.

On the other hand, since 2016 in Ha Long city had two more water puppet businesses, so the company had to quit this business activity.

Casino is a seasonal gaming activity, so income has to rely on the number of customers, the company said.