GGRAsia – Kangwon Land 1Q net loss narrowed to US$5mln

Kangwon Land 1Q net loss narrowed to US$5mln

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

Kangwon Land Inc – operator of Kangwon Land, a resort with the only casino in South Korea permitted to serve local players – saw the company’s net loss at KRW5.85 billion (US$4.6 million) in the first quarter, narrowed from a KRW11.00-billion net loss in the fourth quarter last year.

The first-quarter net loss also narrowed from first-quarter 2021′s KRW40.90-billion net loss, according to a filing to the Korea Exchange on Wednesday.

Kangwon Land saw an operating profit of KRW10.53 billion in the first quarter this year, relative to the operating loss at KRW20.05 billion seen in the previous quarter, and a KRW59.62 billion operating loss in the prior-year first quarter.

The casino operator’s sales for the three months to March 31 reached KRW226.85 billion, down 6.3 percent sequentially, but up 132.8 percent from KRW97.44 billion a year ago.

Gaming sales in the first quarter were KRW192.20 billion, up by 125.0 percent from KRW85.40 billion in the prior-year period. Measured sequentially, first-quarter gaming sales were however down 10.5 percent.

Gross gaming revenue (GGR) for the first quarter was KRW213.00 billion, which is down 10.1 percent sequentially, but up 116.7 percent from the prior-year period.

Of the first-quarter GGR, a total of KRW93.70 billion came from mass gaming tables, and another KRW88.20 billion came from slot machines. Both segments saw year-on-year growth that far outpaced the gaming revenue generated at the property’s ‘Membership Club’ – a reference to a facility for premium players –which only reached KRW31.10 billion for the first quarter.

During the first quarter, Kangwon Land received 356,923 visitors, up by 309.2 percent year-on-year, and up 17.7 percent sequentially, according to the firm’s detailed results, posted on its website. Kangwon Land’s visitors were mostly locals.

From December 18, the property had seen its gaming operations reduced to 12 hours per 24-hour cycle, from 20 hours, in line with local rules on social distancing to counter the spread of Covid-19. Operations then increased to 13 hours per 24-hour cycle, from March 5 to April 3, before returning to 20-hours from April 18 as the local social distancing policy eased, the firm noted in its latest financial results.

First-quarter non-gaming sales were KRW34.70 billion, up by 27.1 percent sequentially and also up 188.2 percent from the prior-year period.