The operator of the largest casino in the northeast part of Vietnam has revealed that it finally generates a profit of more than VND8 billion in the third quarter of the current fiscal year after a period of consecutive losses.
The operator of the Royal Casino in Ha Long – Hoang Gia International JSC – has marked a period of consecutive losses in 2019, which was finally interrupted in the third quarter of the year. The company has revealed that in the latest-reported period its revenue rose sharply by almost 48% in comparison to the result it posted over the same period a year ago. The company has explained that a successful marketing and advertising campaign aimed at popularizing the casino services and attract new customers was the main reason for the revenue increase in Q3.
Furthermore, the operator also revealed that its gross profit margin rose from 3.7% in the third quarter of 2018 to 29.07% in the same period of the current fiscal year. Hoang Gia International, however, did not provide any information about the factors which have been the major drivers of the sharp increase in its gross profit margin. The reported gross profit was more than VND24.5 billion, with the figure representing a massive surge from the VND2-billion gross profit registered in the third quarter of 2018.
Royal Casino in Ha Long Is Also Responsible for the Operator’s Accumulated Losses
The operator of the Royal Casino in Ha Long has revealed that it has used various measures in order to minimize its expenses over the third quarter. As a result of the combined effects of cost-cutting measures and increased revenue, Hoang Gia International reported a profit after tax which exceeded VND8 billion, putting an end to the losses which hit it over the first two quarters of 2019.
It was exactly the casino revenue which generated more than 36% of the overall revenue of Hoang Gia over the first 9 months of the current fiscal year. The rest of the total revenue has been generated by the rest of the business activities of the company, including the housing and hospitality services it offers.
Hoang Gia International’s casino services have been quite popular among foreign visitors of Ha Long Bay. The gambling area is built into a separate area within the hotel premises.
Unfortunately for the casino operator, even though it had positive business results over the third quarter of 2019, the overall losses of the company still amount to more than VND70 billion in the first nine months of the year. If the losses generated in the previous years are added, the casino company has its accumulated losses rose to VND84 billion, and it is exactly the casino that is the one to blame for these losses. As explained by the company’s executives, the Royal Casino in Ha Long could be described as a seasonal gambling activity and its revenue very much depends on the number of its visitors.
