Royal International (RIC) Posts Q2 2026 Loss of VND 9B on Casino Revenue Halved by World Cup

Overview

Royal International Corporation (RIC), a casino and hospitality operator listed on UPCOM, reported a Q2 2026 net loss of VND 9 billion, reversing a VND 10 billion profit in Q2 2025. Revenue fell 30% year-on-year to VND 33 billion, driven by a 50% plunge in casino revenue to VND 17 billion. The company cited the World Cup 2026 and elevated airfares as key factors reducing VIP customer spending and foreign tourist arrivals.

Key Facts

• Q2 2026 net loss of VND 9 billion, compared to a net profit of VND 10 billion in Q2 2025.
• Q2 2026 revenue fell 30% year-on-year to VND 33 billion.
• Casino revenue dropped 50% to VND 17 billion from VND 33 billion in Q2 2025.
• Gross profit declined 82% to VND 3 billion; gross margin narrowed to 9% from 42%.
• First-half 2026 net loss of VND 2 billion, versus a profit of nearly VND 1 billion a year earlier.
• Accumulated losses reached VND 600 billion as of June 30, 2026.
• Total assets stood at VND 932 billion, with total liabilities of VND 346 billion and borrowings of VND 171 billion.
• RIC shares closed at VND 6,200 on July 26, 2026, on UPCOM.

What Happened

Royal International Corporation (RIC) released its Q2 2026 financial statements, revealing a sharp reversal from profitability to a net loss of VND 9 billion. The company attributed the poor performance to a 50% decline in casino revenue, which it said was caused by the World Cup 2026 drawing global entertainment spending away from its VIP clientele, as well as high airfares due to rising fuel costs that reduced international tourist arrivals. Additionally, seasonal factors affected Ha Long Bay tourism, with fewer cruise ship visitors during the quarter. The company also noted that several VIP players had winning streaks, further depressing casino revenue.

For the first half of 2026, revenue was flat at approximately VND 77 billion, but the Q2 loss pushed the six-month result into a net loss of VND 2 billion, compared to a profit of nearly VND 1 billion in the same period last year. Accumulated losses as of June 30, 2026, totaled VND 600 billion.

Market Context

RIC shares closed at VND 6,200 on July 26, 2026, on the UPCOM exchange, where the stock has traded since being delisted from HOSE in May 2022 due to persistent losses. The company operates in the Travel & Leisure sector, with a focus on casino gaming for foreign nationals and five-star hotel services in Ha Long Bay. The Q2 loss extends a history of financial struggles, with accumulated losses now exceeding VND 600 billion against total assets of VND 932 billion.

Strategic Significance

The Q2 2026 loss underscores RIC’s vulnerability to external shocks such as major sporting events and travel cost inflation, which directly impact its core VIP casino business. The company’s reliance on foreign tourists, particularly cruise ship visitors, makes it sensitive to global travel trends and geopolitical tensions affecting fuel prices. With accumulated losses mounting and a leveraged balance sheet (VND 171 billion in borrowings), RIC faces limited financial flexibility to invest in marketing or facility upgrades to diversify its revenue streams beyond gaming.

What to Watch

• Q3 2026 revenue and profit trends, particularly casino revenue recovery post-World Cup.
• Any strategic initiatives to reduce dependence on VIP gaming, such as expanding non-gaming hospitality services.
• Changes in foreign tourist arrivals to Ha Long Bay, especially from cruise ships.
• RIC’s ability to service its VND 171 billion in borrowings amid ongoing losses.
• Potential capital raising or restructuring moves given accumulated losses of VND 600 billion.