Northern Vietnam casino reports first profit in three years
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Royal Casino, the largest in the northern Quang Ninh Province, last year reported a profit for the first time in three years. Royal International Corporation, its operator, said revenues grew by 48 percent from the previous year to VND288 billion ($12.39 million), and profit after tax to VND17 billion ($731,263) in 2018. This is the company’s first profit since 2015.
The owner of the company is Khai Tiep International Investment Limited, registered in the Cayman Islands.
The casino accounted for VND178 billion ($7.66 million) with the rest coming from hotel, villas and hospitality-related services.
The company’s management said in a financial report that the growth in the casino’s revenues was due to the sharp increase in the number of customers after an expressway connecting Quang Ninh’s Ha Long town with northern Hai Phong City was built last September.
Linking up with the Hanoi-Hai Phong expressway, it cuts the travel time from the capital to Ha Long by half to just 90 minutes.
The company also saved VND16 billion ($688,192) last year in sales and management costs.
At the end of last year the casino had 1,346 employees, 80 fewer than at the beginning of the year.
On Saturday Corona Resort and Casino in the southern Phu Quoc Island became the first casino in Vietnam to allow Vietnamese to gamble.
The government has allowed a three-year trial period.
Vietnamese who gamble here must be over 21, earn a minimum of VND10 million ($430) a month and have no criminal record or objections from family.
Questions & Answers
Q.What were the main reasons cited for the Royal Casino's return to profitability?
What were the main reasons cited for the Royal Casino's return to profitability?
The casino's management attributed the growth in revenues to a sharp increase in customer numbers. This rise was linked to a new expressway connecting Ha Long with Hai Phong City, which significantly reduced travel time from the capital.
Q.How did the casino's operating costs change during the last year?
How did the casino's operating costs change during the last year?
The company saved VND16 billion in sales and management costs last year. Also, the casino reduced its employee count by 80 people, finishing the year with 1,346 employees.
Q.Who owns the Royal International Corporation, the operator of the casino?
Who owns the Royal International Corporation, the operator of the casino?
Royal International Corporation is owned by Khai Tiep International Investment Limited. This company is registered in the Cayman Islands, according to the information provided in the financial report.
Q.What proportion of the total revenue came specifically from the casino operations?
What proportion of the total revenue came specifically from the casino operations?
Of the total VND288 billion in revenues, the casino itself accounted for VND178 billion. The remaining revenue was generated from hotel, villas, and other hospitality-related services.
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