Landing International swings to profit in 2017

Landing International swings to profit in 2017

Hong Kong-listed Landing International Development Limited (LIDL) became profitable again in 2017, no thanks to its gambling segment.

Landing International swings to profit in 2017In a disclosure to the Hong Kong Stock Exchange, LIDL reported that the company jumped to a HK$505.1 million (US$64.55 million) profit in 2017 from a loss of HK$1.1 billion ($140.58 million) in 2016.

The company attributed its profit swing to the stellar performance of its property development segment—including the sale of condominium units at Jeju Shinhwa—and the disposal of Les Ambassadeurs Club and Casino, an upmarket gaming venue in London.

LIDL’s gaming business, however, remained a drag to the company as its revenue dropped 35.1 percent to HK$235.80 million ($30.13 million) in 2017 compared to HK$363.45 million ($46.47 million) revenue in 2016.

Total gaming business segment loss of LIDL from continuing operations was approximately HK$ 117.01 million ($14.95 million). The firm gave no reason for the decline in revenue.

“Despite the disposal of Les A on 11 October 2017, the Group remains firmly committed to its Gaming Business and continues to operate Landing Casino in Jeju, South Korea,” the company said in a statement. “The Group recognizes that a casino is one of the most essential facilities within an integrated resort in order to offer its visitors a complete hospitality experience.”

Meanwhile, LIDL announced in a separate notice that Jeju Shinhwa World, a resort on South Korea’s Jeju Island, is set to open on February 25 after the Government of the Special Self-Governing Province conditionally approved the relocation of its casino from Hyatt Regency Jeju Hotel.

The firm currently has 28 gaming tables and 16 slots and electronic table games (ETG) at the Hyatt Regency Jeju Hotel. Upon its transfer to Jeju Shinhwa World, LIDL said that the Landing Casino will house 155 live gaming tables and 239 slots and ETG.

To provide better product offerings to the customers of Jeju Shinhwa World, Landing Jeju said that it plans to accelerate the construction of the waterpark, theme park hotel and dormitory and training facilities in 2018 instead of shelving it for next year.