Casino operator RIC posts $2.3 mln loss
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Royal International Corporation (RIC), which operates the largest casino in Quang Ninh Province, posted a loss of VND54 billion ($2.3 million) in the first half.
The second quarter was the third consecutive quarter the HCMC Stock Exchange-listed company had reported a loss. Its accumulated loss by the end of June totaled VND282 billion ($12.2 million).
Revenue in the first half fell 38 percent year-on-year to VND49 billion ($2.1 million) as its hotel and casino complex in travel hotspot Ha Long Town was closed most of April due to the coronavirus pandemic.
The company has been cutting down staff and salaries in recent months to reduce costs. In the first six months, its employee numbers fell by 334 to 1,059. It had earlier forecast revenues of VND294 billion ($12.7 million) this year, of which 64 percent would be drawn from the casino and 36 percent from hospitality. Last year Royal International Corporation had posted a loss of VND72 billion ($3.1 million), blaming it on the increasing number of casinos in Ha Long.
Questions & Answers
Q.What was the primary reason for RIC's revenue decline in the first half?
What was the primary reason for RIC's revenue decline in the first half?
Revenue fell because its hotel and casino complex in Ha Long Town was closed for most of April. This closure was a direct result of the coronavirus pandemic, impacting the company's operations significantly.
Q.How much has RIC's total accumulated loss reached by the end of June?
How much has RIC's total accumulated loss reached by the end of June?
By the end of June, RIC's total accumulated loss had reached VND282 billion, which is equivalent to $12.2 million. This figure reflects the ongoing financial challenges the company faces.
Q.What proportion of RIC's forecast revenue for this year was expected to come from its casino operations?
What proportion of RIC's forecast revenue for this year was expected to come from its casino operations?
RIC had forecast that 64 percent of its VND294 billion ($12.7 million) revenue for this year would be generated by its casino. The remaining 36 percent was expected to come from hospitality.
Q.How has RIC attempted to reduce its costs in recent months?
How has RIC attempted to reduce its costs in recent months?
RIC has been cutting staff numbers and reducing salaries in an effort to decrease costs. In the first six months, the company's employee count fell by 334, leaving a total of 1,059 employees.
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