Owner of Quang Ninh's largest casino loses 15 consecutive quarters

Revenue halved and financial costs doubled in the second quarter, causing a casino owner in Quang Ninh to report its 15th consecutive quarter of losses.

According to the recently released financial report, the revenue of Royal International Corporation (RIC) decreased by 42% compared to the second quarter of 2022. The management board said that in the same period last year, the company took measures to stabilize the customer source after a long period of "freezing". Therefore, the revenue in the second quarter of 2022 increased sharply, creating a high comparison base.

This period, financial revenue decreased by more than 70% due to exchange rate differences. Meanwhile, financial expenses doubled due to the sharp increase in interest expenses and exchange rate differences. This company spent nearly 6 billion VND to pay interest in the second quarter.

In total, RIC's after-tax profit was negative nearly VND24 billion, up nearly 48 times compared to the same period last year. This is the 15th consecutive quarter of loss for this enterprise.

Inside the casino owned by Royal International. Photo: RIC — Inside the casino owned by Royal International. Photo: *RIC*

RIC is operating a casino, hotel and villa in Bai Chay (Ha Long, Quang Ninh). By division, the casino brought in more than VND14 billion in revenue and had an operating loss of more than VND9 billion. The hotel and villa segment recorded a revenue of more than VND10 billion and an operating loss of about VND14.5 billion.

In the first 6 months of the year, this company had more than 55 billion VND in revenue, a slight increase compared to the same period in 2022. After-tax profit was negative more than 35 billion VND. Compared to the whole year plan, this company completed about a quarter of the target. In terms of profit, RIC is still far from the profit plan of 1.5 million USD (about 34 billion VND). The accumulated loss of this enterprise is exceeding 510 billion VND.

According to the annual meeting documents, the number of international visitors to RIC hotels increased sharply in the first three months of the year. In addition, the company has been operating the Royal International Convention Palace since July 2022, so it is expected to create a new source of revenue. The management board said it has "taken every measure" to stabilize existing customer sources and exploit new customer sources, but has not yet offset costs.

From 2016 to now, casino owners in Quang Ninh have only made a profit in 2018. According to RIC leaders, due to the special business category, winning or losing depends entirely on luck. In addition, neighboring countries such as Cambodia, the Philippines, Myanmar... all have additional casinos, causing the source of customers to be dispersed and the market share to be smaller.

Royal International was established in 1994 with a charter capital of 15 million USD, aiming to build and operate a 5-star hotel in Ha Long. Eight years later, the company increased its capital to 22 million USD and was granted a business license to operate games with prizes for foreigners. The company was listed on the Ho Chi Minh City Stock Exchange (HoSE) in 2007. In May 2022, RIC shares were forced to be delisted from HoSE due to three consecutive years of losses.

Siddhartha

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