GGRAsia – Kangwon Land reports modest profit growth

Kangwon Land reports modest profit growth

Nov 14, 2014 Newsdesk Latest News, Rest of Asia, Top of the deck

Kangwon Land Inc, the operator of the only casino resort in South Korea where the country’s nationals are allowed to gamble, reported net profit for the third quarter of 2014 of KRW105.5 billion (US$95.9 million), up 0.9 percent from a year earlier.

Profit growth was mainly due to the expansion in gross gaming revenue (GGR) in the period, as sales from the non-gaming sector fell, the firm said in a filing this week.

The casino operator reported revenue of KRW394 billion in the three months to September 30, an increase of 5.2 percent from the third quarter of 2013.

GGR for the period grew by 5.9 percent to KRW376 billion, as the company continued to expand its casino capacity.

Non-gaming revenue however fell by 6.6 percent to KRW18 billion. The decrease was mainly attributable to a 3.6 percent year-on-year drop – to 83,300 – in the number of visitors, it added.

Operating profit for the period dropped by 1.8 percent year-on-year to KRW132.8 billion.

There are currently 17 casinos in South Korea, but Korean nationals are only allowed to gamble at Kangwon Land (pictured in a rendering), a difficult-to-access location 150 kilometres (93 miles) southeast of Seoul in Kangwon province.

Kangwon Land is currently building the “High1 Water World” project, an expansion that will include “a water-park, 12 pools and 15 spas”.

The project, expected to have a soft opening in the second half of 2016, has a price tag of KRW167.2 billion, the company said in previous filings.