GGRAsia – Kangwon Land saw net profit of US$17mln in 3Q

Kangwon Land saw net profit of US$17mln in 3Q

Nov 09, 2021 Newsdesk Latest News, Rest of Asia, Top of the deck

Kangwon Land Inc – operator of Kangwon Land (pictured) a resort with the only casino in South Korea permitted to serve local players – saw net profit of nearly KRW20.42 billion (US$17.3 million) in the third quarter to September 30, down by 2.4 percent from the previous quarter. That is according to the firm’s unaudited financial results published on Tuesday. The firm recorded a net loss of KRW40.90 billion in the third quarter last year.

Capacity restrictions at Kangwon Land were in place during the latest reporting period, as a Covid-19 countermeasure.

From early November the venue was permitted to increase the number of gaming customers it can receive at any one time to over 2,000, from 1,800 previously. The 1,800 maximum daily guest capacity – applied since mid-July – amounts to 30 percent of the 6,000-visitor pre-pandemic level.

During the third quarter, Kangwon Land received 254,188 visitors, a surge by 534 percent year-on-year and by 27.5 percent sequentially, according to the firm’s results release. Kangwon Land’s visitors were mostly locals.

Third-quarter sales this year reached KRW245.20 billion, a surge by 220.1 percent on the KRW76.60 billion achieved in the third quarter of 2020. Judged quarter-on-quarter, sales were up by 20.4 percent on the KRW203.60 billion tallied in the second quarter of this year.

Gaming sales in the third quarter were KRW213.00 billion, up by 261.6 percent on the KRW58.90 billion achieved in the prior-year quarter. Measured sequentially, third-quarter gaming sales were also up 15.8 percent from KRW183.90 billion in the previous quarter.

Third-quarter non-gaming sales were KRW32.30 billion, up by 82.2 percent year-on-year, and by 63.4 percent sequentially.

Kangwon Land saw an operating profit of KRW24.30 billion in the third quarter, a surge by 798.4 percent from KRW2.70 billion achieved in the previous quarter. That also compared to the firm’s operating loss of KRW64.90 billion in the prior-year quarter.

Gross gaming revenue (GGR) for the third quarter was KRW235.90 billion, up by 272.4 percent year-on-year, and also 15.8 percent higher than the KRW203.80 billion achieved in the second quarter.

Of the third-quarter GGR, a total of KRW92.60 billion came from mass gaming tables and another KRW91.20 billion came from slot machines. The property’s ‘Membership Club’ – a reference to a facility for premium players – generated GGR of KRW52.1 billion for the third quarter. Both the mass and premium gaming segments have marked sequential growth.

The results filing reiterated that Kangwon Land’s GGR is subject to a sales cap policy from the National Gambling Control Commission in South Korea.