Landing International issues profit warning, expecting 2020 losses to narrow by 20%

South Korea-based gaming firm Landing International Development Ltd (582) issued a profit warning on 5 March; the Hong Kong-listed firm’s annual profits in 2020 is estimated to see a year-on-year decrease of 3% while its net consolidated losses in the year are estimated to narrow by 10 to 20%.

The firm’s falling profits are largely due to the Covid-19 pandemic, but a fund worth about HK$100 million that went missing earlier this year also contributes to the firm’s losses.

Landing International is still searching for one of its employees after discovering around HK$100 million in cash belonging to its casino in Jeju, South Korea, has gone missing in January. The firm has immediately reported the incident to the police in South Korea and the incident is still under investigation.

Landing International, which owns and operates casino resort Jeju Shinhwa World, attributes its declining profits to the drop in visitor arrivals at its foreigners-only casino. However, the number of local Korean visitors to the casino resort has increased in the latter half of 2020.

Despite falling profits in the past year, the firm’s net consolidated losses in 2020 are estimated to narrow by 10 to 20% thanks to a decrease in operating cost and spending on employee benefits.

The firm is still reviewing its annual performance in 2020, and the relevant annual performance report is slated to be published by the end of March.