GGRAsia – Jeju Dream Tower posts US$12mln 4Q gaming revenue

Jeju Dream Tower posts US$12mln 4Q gaming revenue

Feb 11, 2022 Newsdesk Latest News, Rest of Asia, Top of the deck

The Jeju Dream Tower casino resort (pictured), on the South Korean holiday island of Jeju, reported gaming revenue of KRW14.4 billion (US$12.0 million) in the three months to December 31, 2021. That was up 17.1 percent from the KRW12.3 billion recorded in the previous quarter, said the promoter, Lotte Tour Development Co Ltd, in a Thursday release.

Net casino sales – i.e., such sales after deducting rebates and commissions – stood at KRW9.8 billion in the fourth quarter of 2021, compared to KRW8.1 billion in the third quarter.

For the fourth quarter, approximately KRW9.7 billion of the gaming revenue came from the VIP segment, with KRW4.7 billion from mass table play. That compared to KRW4.3 billion revenue from the VIP segment, and KRW8.0 billion from the mass-market business in the third quarter.

VIP rolling chip volume for the fourth quarter was KRW253.5 billion, up from KRW133.9 billion in the prior quarter. Mass table drop – the amount of cash exchanged for chips at the table – was KRW27.4 billion, a decline from KRW38.0 billion in the third quarter.

Lotte Tour opened its foreigner-only casino at Jeju Dream Tower on June 11, 2021. The casino was transferred in early 2021 from Lotte Hotel Jeju.

The company reported KRW30.9 billion gaming revenue for full-year 2021, and net casino sales of KRW21.1 billion.

The operator of the Grand Hyatt Jeju hotel reported a fourth-quarter operating loss of KRW29.1 billion, and negative earnings before interest, taxation, depreciation and amortisation (EBITDA) to the tune of KRW10.2 billion. That compared to an operating loss of nearly KRW33.7 billion and negative EBITDA of KRW16.5 billion in the third quarter.

For full-year 2021, the property generated an operating loss of KRW130.2 billion, compared to KRW71.4 billion the previous year. It recorded negative EBITDA of KRW61.3 billion, a wider loss on the KRW53.4 billion in 2020.

Lotte Tour launched a new phase of the Grand Hyatt Jeju on January 10. The property now features a total of 1,600 rooms.