GGRAsia – Casino operator Paradise Co narrows loss in 1Q

Casino operator Paradise Co narrows loss in 1Q

May 12, 2021 Newsdesk Latest News, Rest of Asia, Top of the deck

Paradise Co Ltd, an operator in South Korea of foreigner-only casinos, narrowed in the first quarter its net loss attributable to shareholders, compared to the fourth quarter.

Its first-quarter loss was KRW18.2 billion (US$16.2 million), compared to a net loss of KRW67.5 billion in the final three months of 2020. The firm had a net loss of just under KRW2.5 billion in the first quarter of last year.

In common with casino firms across the Asia-Pacific region, Paradise Co has had its business disrupted quarter by quarter, due to factors including capacity restrictions and other measures linked to efforts to contain the Covid-19 pandemic.

The group’s sales judged quarter-on-quarter dipped 7.1 percent, to KRW96.6 billion, and were down 47.7 percent judged year-on-year.

But first-quarter casino sales were down by a more hefty 31.1 percent sequentially, at just under KRW37.9 billion. Such sales were down 51.6 percent judged year-on-year.

Paradise City casino resort (pictured) at Incheon, near Seoul’s main airport, recorded casino sales of KRW30.2 billion for the period, down 60.2 percent from a year earlier, but up 51.4 percent sequentially. Paradise Co shares the economic interest with Japanese group Sega Sammy Holdings Inc, via the Paradise Segasammy Co Ltd entity.

Group wide, Paradise Co’s first-quarter 2021 earnings before interest, taxation, depreciation and amortisation (EBITDA) were KRW12.9 billion, up 76.3 percent on the KRW7.3 billion achieved in the last quarter of 2020. Judged year-on-year, EBITDA was down 59.0 percent.

Paradise Segasammy’s EBITDA were back in positive territory compared to the fourth quarter, which had seen negative EBITDA amounting to KRW796 million. The unit’s first-quarter EBITDA were just under KRW6.9 billion, which Paradise Co said was “driven by cost savings”.

Paradise Co noted in its earnings presentation, that Paradise City non-gaming facilities including: Hotel ‘Art Paradiso; Club ‘CROMA’; Spa ‘CIMER’; the theme park; and ‘WONDER BOX’, were “shut down temporarily” from July 1, 2020.

But the filing said Paradise City was “ready to reopen the theme park and spa,” with effect from “the upcoming summer session”.

Paradise Co’s other gaming operations are at: Walkerhill in Seoul; Jeju Grand on Jeju Island; and Busan Casino in the southern port city of Busan.