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Shin Hwa World reports substantial decrease in consolidated revenue

April 2, 2024 South Korea iGaming & GamblingIndustry Updates

The financial results for the fiscal year that concluded on December 31, 2023, were released by South Korean gaming operator Shin Hwa World Limited. The figures indicate a significant decline in consolidated revenue.

Consolidated revenue for the firm in the year was around HK$1 billion (US$128.8 million), a notable 25.3 percent decrease from approximately HK$1.3 billion ($166.1 million) in the prior year.

The Landing Casino is the sole attraction open to foreigners in Jeju Shinhwa World, an integrated resort on South Korea’s Jeju Island. It is managed by Shin Hwa World. The casino has 210 slot machines, 150 gaming tables, and electronic table games. Its distinctive gaming area spans over 5,500 square meters.

The company’s gaming revenue remained relatively stable at approximately HK$46.7 million ($6.0 million), compared to approximately HK$46.1 million ($5.9 million) the previous year. The non-gaming revenue was approximately HK$989.5 million ($127.5 million) in the fiscal year, down from approximately HK$1.3 billion ($166.1 million) in 2022.

The company asserted a larger loss because of the owners despite efforts to reduce losses. The year’s deficit increased from about HK$216.9 million ($27.9 million) in 2022 to almost HK$522.4 million ($67.4 million).

Revenue from the sale of residential real estate and property management was about HK$201.9 million ($26.0 million), down more than one-third from the prior year.

The increase in consolidated net loss was caused by a number of factors, including higher employee benefit costs, increased marketing and operating expenses driven by inflation, particularly in utility and facility maintenance costs, lower residential property sales as a result of the market downturn and interest rate increases, and intense competition that affected room pricing and occupancy rates.

The business’s observation that the reversal of trade and other receivables impairment recorded in the previous fiscal year did not generate a substantial amount of revenue also had an impact on the outcomes.

Shin Hwa World pledged to exercise caution when it comes to financial commitments and future growth plans, expressing worry about the unfavorable market conditions brought on by rising interest rates.

The company spent the whole year updating, maintaining, and renovating Jeju Shinhwa World’s facilities. It provided a brand-new, upscale theater with the newest surround sound technology and upscale seating choices. In addition, the company evaluated whether further residential development in zone R of Jeju Shinhwa World would be feasible in order to eventually diversify its source of income.

Shin Hwa World emphasized its dedication to regularly assessing its financial status and funding needs, as well as taking new financing and fundraising opportunities into account.

Original story by: Asia Gaming Brief

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