New Silkroad Culturaltainment Ltd Warns Of HKD47m Loss

Culturaltainment Ltd, a Hong Kong-listed investor in gaming and entertainment, warned that it expects to lose HKD47 m ($6.1 m) during the first six months of 2020. The sum is nearly double that of the previous year’s HKD23 m loss.

The group operates MegaLuck casino inside KAL Hotel in Jeju Island , South Korea, and it reported that the losses were caused by the Korean government’s coronavirus pandemic and travel restrictions. The company reported that it “implemented cost-reduction measures to counteract the current situation” and vowed to closely track the sector.

Revenue from MegaLuck casino dropped 20 percent in 2019, receiving HKD82.6 m, which was 39 percent of group-wide revenue. The casino did a little better in 2018, taking in about 46 per cent of the earnings of the company.

In addition, New Silkroad aims to construct an integrated resort, saying it will be one of South Korea’s largest IR complexes. The group acquired Macrolink Glorious Hill Co Ltd in 2017, creating a complex known as Glorious Hill that will include a casino, several five-star hotels and a theme park, as well as residential and business buildings. The project is suspended, however, due to delays in financing for the project.