GGRAsia – Kangwon Land 3Q net profit up 38pct on strong sales

Kangwon Land 3Q net profit up 38pct on strong sales

Nov 11, 2019 Newsdesk Latest News, Rest of Asia, Top of the deck

Kangwon Land Inc, the operator of the only casino resort in South Korea where the country’s nationals are allowed to gamble, says its third-quarter net profit rose by 37.9 percent from the prior-year period, supported by stronger sales.

Such profit in the three months to September 30 was KRW128.6 billion (US$110.8 million), compared with nearly KRW93.3 billion in the same period last year, according to a Friday filing to the Korea Exchange. The firm said its third-quarter net profit grew by 152.5 percent when compared to KRW50.9 billion in the preceding quarter.

Operating income for the third quarter this year rose by 12.3 percent year-on-year to KRW139.2 billion, said Kangwon Land.

South Korea’s nationals are only allowed to gamble at Kangwon Land casino resort (pictured) in an upland area of Kangwon province – 150 kilometres (93 miles) from the country’s capital Seoul.

The casino operator reported sales of nearly KRW405.5 billion for the three months to September 30, up 9.9 percent from a year earlier. That included gross gaming revenue of KRW352.5 billion, an increase of 11.0 percent from the prior-year quarter.

The company reported a year-on-year increase in the mass-market gaming segment, and in sales in its so-called “Membership Club” segment.

According to a separate presentation filed on Friday, Kangwon Land’s sales in the mass table segment grew by 11.3 percent year-on-year to KRW171.9 billion in the third quarter, while sales from slot machines rose by 10.0 percent to KRW152.6 billion. Revenue from the membership club segment amounted to KRW65.5 billion in the period, up by 13.5 percent when compared to a year ago.

Kangwon Land’s third-quarter non-gaming revenue increased by 2.8 percent year-on-year to KRW53.0 billion.

The company did not give commentary on the quarterly results filed with the Korea Exchange, nor in a separate presentation published on its corporate website.

The company is – as the only authorised provider of casino gaming to South Korean nationals – subject to significant oversight from the country’s government.