RIC Q3/2026: Royal International Casino Loss Widens, Accumulated Deficit Hits VND 602B

Overview

Royal International (RIC), the only casino operator listed on the Vietnamese stock exchange, reported a Q3/2026 net loss of nearly VND 3 billion, roughly double the prior-year loss, even as net revenue rose 13.7% to nearly VND 39 billion. The company, which runs Casino Royal Hạ Long in Quảng Ninh, said higher land-rent costs and falling financial income drove the result. Accumulated losses reached nearly VND 602 billion as of 30 September 2026, equivalent to more than 85% of charter capital.

Key Facts

• Q3/2026 net revenue of nearly VND 39 billion, up 13.7% year on year.
• Gaming revenue exceeded VND 25.2 billion, up almost 27% and about 65% of total revenue.
• The gaming-club segment swung to an operating loss of nearly VND 10 billion from a profit of about VND 3.5 billion a year earlier.
• Cost of goods sold rose nearly 23% to VND 28.8 billion, outpacing revenue growth; gross margin narrowed to about 26% from nearly 32%.
• Q3/2026 net loss of nearly VND 3 billion, versus a loss of more than VND 1 billion in Q3/2025.
• 9M/2026 net revenue of nearly VND 115.8 billion (+4.4%), with a net loss of more than VND 4.35 billion versus about VND 765 million a year earlier.
• Accumulated losses of nearly VND 602 billion at 30 September 2026; equity of about VND 577 billion against total assets of nearly VND 920 billion.

What Happened

In its Q3/2026 financial statements, CTCP Quốc tế Hoàng Gia said net revenue reached nearly VND 39 billion, with gaming contributing more than VND 25.2 billion and room revenue close to VND 4.9 billion, alongside food and beverage. Despite the top-line growth, the gaming-club segment recorded an operating loss of nearly VND 10 billion, reversing a profit of about VND 3.5 billion a year earlier, while the hotel and villa segment moved to a profit of roughly VND 7.3 billion from a loss of more than VND 5 billion.

In its explanation of the results, the company attributed the wider loss to higher 2026 land-rent unit prices versus 2025 and the expiry of the 30% land-rent reduction it received in the prior-year period. Financial revenue fell 63% to VND 447 million while financial expenses stayed above VND 5 billion, mostly interest on borrowings. This marks RIC’s second consecutive quarterly loss, following a loss of more than VND 9 billion in Q2/2026; the company previously endured a 22-quarter losing streak.

Market Context

RIC trades on UPCOM and closed at VND 5,000 on 20 October 2026, near the low end of the exchange’s price band. The stock sits in the small-cap gaming and hospitality segment, where liquidity is thin and the investor base is narrow. The result contrasts with the broader Vietnamese market’s earnings recovery narrative, in which large-cap tourism and resort names have benefited from a rebound in international arrivals to Quảng Ninh and other northern hubs. RIC’s balance sheet remains the key constraint: short-term debt of nearly VND 240 billion is roughly three times current assets, and total liabilities stand near VND 343 billion.

Strategic Significance

The investment case for RIC rests on whether Casino Royal Hạ Long can convert rising gaming revenue into operating leverage. Q3 shows the opposite: revenue growth of 13.7% was more than absorbed by a 23% rise in cost of goods sold and by land-rent policy normalisation, pushing the gaming segment into an operating loss. With accumulated losses at more than 85% of charter capital, the company’s capacity to fund marketing, property upgrades and debt service from internal cash flow is limited, and any future capital raise would likely require shareholder approval and disclosure on dilution. The policy angle matters too: the expiry of the 30% land-rent support illustrates how sensitive RIC’s cost base is to Quảng Ninh provincial land policy, a variable outside management control.

What to Watch

• Q4/2026 and full-year 2026 financial statements, expected in early 2027, for evidence that the gaming segment returns to operating profit.
• Any disclosure on 2027 land-rent pricing from Quảng Ninh authorities, which drove the Q3 cost increase.
• Updates on short-term debt of nearly VND 240 billion and refinancing or repayment terms.
• Any shareholder resolution on capital raising, given accumulated losses above 85% of charter capital.
• Monthly international arrival data for Quảng Ninh, a leading indicator for casino and hotel volumes.