Casino operator targets ending losing streak
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Royal International Corporation, which operates a casino in the northern Quang Ninh Province, has set itself a profit target of $500,000 this year after two years of losses.
It seeks to double revenues to $10.3 million, $5.8 million from the casino and the rest come from its hotel and villas.
The corporation will continue with last year’s business strategy of targeting foreigners working in Vietnam who are unable to return to their home country due to the Covid-19 pandemic.
It plans to cut costs and adopt a flexible pricing strategy to attract Vietnamese customers once the pandemic passes.
It posted a VND82 billion ($4.3 million) loss last year, and said casinos are a unique business that rely on chance but also pointed to the increasing number of casinos in the north, which cut into its revenues.
RIC, which has a charter capital of $22 million, is listed on the Ho Chi Minh Stock Exchange.
Questions & Answers
Q.What is Royal International Corporation's financial goal for the current year?
What is Royal International Corporation's financial goal for the current year?
The company aims to achieve a profit of $500,000 this year. This target follows two consecutive years where the casino operator reported losses.
Q.Which customer groups is Royal International Corporation currently targeting and planning to target in the future?
Which customer groups is Royal International Corporation currently targeting and planning to target in the future?
Currently, the company targets foreigners working in Vietnam who cannot return home due to the pandemic. Once the pandemic passes, they plan to attract Vietnamese customers using a flexible pricing strategy.
Q.What was Royal International Corporation's financial performance last year?
What was Royal International Corporation's financial performance last year?
Last year, the corporation reported a loss of VND82 billion, which is equivalent to $4.3 million. This contributed to their two-year losing streak.
Q.What factors has the company identified as impacting its revenues?
What factors has the company identified as impacting its revenues?
The company acknowledged that casinos inherently rely on chance. They also noted that an increasing number of casinos in the northern region has negatively affected their revenues.
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