Jeju Dream Tower casino US$10mln revenue in 3Q

Nov 19, 2021 Newsdesk Latest News, Rest of Asia, Top of the deck  

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The Jeju Dream Tower casino resort, located downtown in the capital of the South Korean holiday island of Jeju, recorded gaming revenue of KRW12.3 billion (US$10.4 million) in the three months to September 30.

This is according to Lotte Tour Development Co Ltd, the operator of the Jeju Dream Tower complex.

Net casino sales – i.e., such sales after deducting rebates and commissions – stood at KRW8.2 billion, the company added.

Jeju Dream Tower opened its casino facility (pictured) on June 11. Its promoter subsequently reported KRW4.2 billion gaming revenue for that stub month, and net casino sales of KRW3.0 billion in the same period.

For the third quarter, just under KRW4.3 billion of the gaming revenue was from the VIP segment, and KRW8.0 billion from mass table play, according to Lotte Tour Development.

VIP rolling chip volume for the period was KRW133.9 billion, and mass table drop – the amount of cash exchanged for chips at the table – was KRW38.0 billion.

The company, which also operates its Grand Hyatt Jeju hotel business at Jeju Dream Tower, had a quarterly operating loss of KRW33.7 billion, and negative earnings before interest, taxation, depreciation and amortisation (EBITDA) of nearly KRW16.5 billion, versus an operating loss of nearly KRW29.6 billion and negative EBITDA of KRW13.0 billion during the second quarter.

During the third quarter, Jeju Dream Tower casino received on average daily, “around 250” visitors, according to the promoter. Lotte Tour Development reported that group wide in the three months to September 30, it was operating 21 hotels in South Korea, and 13 in overseas markets; accounting in aggregate for 46,022 rooms.

South Korean brokerage Hana Financial Investment Co Ltd released a note on Monday, estimating that net casino sales at Jeju Dream Tower would reach approximately KRW13.5 billion in the fourth quarter, and KRW24.7 billion for full-year 2021.

The institution’s note said, since the Grand Hyatt Jeju hotel had been running at limited capacity in the third quarter, it had put a damper on casino sales at Jeju Dream Tower during that reporting period.

The brokerage estimated Jeju Dream Tower would have a fourth-quarter deficit of KRW17.0 billion, and a deficit of KRW10.0 billion for first-quarter 2022.

The note also forecast casino sales would strengthen once additional rooms at the Grand Hyatt Jeju hotel opened in late November.

Lotte Tour Development has said Grand Hyatt Jeju’s new phase – involving 850 rooms – will open on November 29. The first phase of Grand Hyatt Jeju, involving 750 guest rooms, opened in December 2020.

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