Casino firm Paradise Co slips to negative EBITDA in 1Q

May 12, 2022 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Paradise Co Ltd, an operator in South Korea of foreigner-only casinos, reported earnings before interest, taxation, depreciation and amortisation (EBITDA) that were negative by nearly KRW1.49-billion (US$1.15 million) for the first quarter this year.

That compared to the group’s positive EBITDA of KRW2.76 billion in the fourth quarter last year, and the positive KRW12.93-billion EBITDA in the opening quarter of 2021.

Paradise Co reported an operating loss of KRW25.53 billion during the three months to March 31, widened from the operating loss amounting to KRW20.42 billion, recorded in the previous quarter and the operating loss tallying KRW12.22 billion in the prior-year quarter. That is according to the firm’s latest financial results, filed on Thursday.

For the first quarter, Paradise Co said its casino sales amounted to nearly KRW31.0 billion, which represented a sequential quarterly decline of 37.4 percent, and a year-on-year decline of 18.1 percent.

Gaming table “drop” – the amount paid by patrons in exchange for gaming chips – reached KRW359.0 billion in the first quarter, an 11.8-percent contraction sequentially, and down by 4.8 percent, year-on-year.

Overall first-quarter sales of the group reached KRW99.73 billion, representing a year-on-year increase of 3.2 percent, but a reduction by 10.5 percent relative to the previous quarter.

The group’s casino business division consists of the venues Walkerhill in Seoul, Jeju Grand on Jeju island, a property in the port city of Busan, and Paradise City (pictured in a file photo) at Incheon – run via a venture with Japan’s Sega Sammy Holdings Inc.

Paradise Co would continue for now, to focus on “locals and expats”: i.e., foreigners living in South Korea, for its casino business, the group said in a separate release issued on its website on Thursday.

The casino operator mentioned Japanese visitors might head for South Korea’s casinos from the “third quarter” this year, with an expected easing of travel between the two countries by that time.

Seoul-based brokerage Shinhan Investment Corp recently suggested that Paradise Co was likely to be the South Korean casino operator to benefit the most from an anticipated return of Japanese tourists to the country.

Paradise Co saw a first-quarter net loss attributable to shareholders measuring KRW28.58 billion; narrowed from KRW47.05 billion in the previous quarter. The group’s prior-year first-quarter net loss was KRW18.20 billion.

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