• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Kangwon Land’s net profit up 70 pct in fourth quarter

Feb 23, 2015 Newsdesk Latest News, Rest of Asia, Top of the deck  


Kangwon Land’s net profit up 70 pct in fourth quarter

Kangwon Land Inc, the operator of the only casino resort in South Korea where the country’s nationals are allowed to gamble, reported net profit for the final quarter of 2014 of KRW47.4 billion (US$42.7 million), up by 69.8 percent from a year earlier.

The growth in net profit for the three months to December 31 was supported by a 12.3-percent increase in gross gaming revenue (GGR) to KRW351.8 billion, the firm said in a filing.

Kangwon Land’s revenue from VIP play increased by 34.1 percent year-on-year in the fourth quarter of 2014. GGR accounted for 94.2 percent of the company’s total revenue of KRW373.6 billion for the period.

Revenue from non-casino services however slipped by 2.8 percent from a year earlier.

Operating profit for the period grew by 188 percent year-on-year to KRW119.2 billion.

“Operating profit [in the fourth quarter] surpassed our forecast of KRW98 billion, due to effective cost control and strong operating leverage from its slot machine segment,” commented Thomas Kwon, an analyst at Daiwa Securities Group Ltd in a note on the results.

“Kangwon Land continued to reduce operating costs and improve profitability under its new management (in place since November 2014),” he said, adding that the company recorded a one-off impairment loss of KRW35.3 billion in the period, “and as a result had a net-profit margin of 12.7 percent”.

“We believe this strong showing in the fourth quarter of 2014 reflects how the new CEO … has focused on streamlining the casino operation and reorganising overall service divisions, rather than seeking new business-growth initiatives,” said Mr Kwon.

There are currently 17 casinos in South Korea, but Korean nationals are only allowed to gamble at Kangwon Land Casino (pictured), 150 kilometres (93 miles) southeast of Seoul in Kangwon province.

For full-2014, Kangwon Land reported net profit of KRW359.3 billion, up by 20.8 percent from the previous year. Revenue for the whole of 2014 was KRW1.5 trillion, a 9.9-percent increase from 2013, with GGR growing by 11.1 percent year-on-year to KRW1.4 trillion.

Daiwa’s Mr Kwon said he expects Kangwon Land “to capitalise on the solid demand recovery from the VIP segment and other casino-operating metrics,” such as the number of visitors and gaming table drop.

“For 2015, we forecast a rise in revenue from its VIP segment (9 percent year-on-year) and slot machines (18 percent year-on-year),” he added.


  • tweet
Related articles
  • Mohegan seeks govt nod to delay Inspire opening
    Mohegan seeks govt nod to delay Inspire...

    Jan 22, 2021  

  • Half Kangwon Land staff on mandatory leave until Jan 31
    Half Kangwon Land staff on mandatory...

    Jan 22, 2021  

More news
  • Digital yuan eventually for Macau mass bets mulls Bernstein
    Digital yuan eventually for Macau mass...

    Jan 22, 2021  

  • Macau Covid-19 case no bar to mainland travel ties
    Macau Covid-19 case no bar to mainland...

    Jan 22, 2021  


Latest News

Digital yuan eventually for Macau mass bets mulls Bernstein

Digital yuan eventually for Macau mass bets mulls Bernstein

Jan 22, 2021  

Were China’s central government-backed digital yuan (CNY) to be adopted in Macau for casino chip transactions, it could in the long run benefit mass and premium-mass play, as cross-border money...
Read More
Macau Covid-19 case no bar to mainland travel ties

Macau Covid-19 case no bar to mainland travel ties

Jan 22, 2021  

Mohegan seeks govt nod to delay Inspire opening

Mohegan seeks govt nod to delay Inspire opening

Jan 22, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"The entire company is eagerly anticipating the launch of our newest themed destination – The Londoner Macao"

Wilfred Wong Ying Wai

President of Macau-based casino operator Sands China



Most Popular

  • Sands China sixth Macau op to pledge staff extra paymentSands China sixth Macau op to pledge staff extra payment January 21, 2021
  • CNY 2021 unlikely to boost Macau casinos, say observersCNY 2021 unlikely to boost Macau casinos, say observers January 15, 2021
  • Casino op MGM China to pay most staff discretionary bonusCasino op MGM China to pay most staff discretionary bonus January 18, 2021
  • Wynn and Melco also flag bonus for Macau staffWynn and Melco also flag bonus for Macau staff January 19, 2021
  • Londoner Macao first phase launch Feb 8 says Sands ChinaLondoner Macao first phase launch Feb 8 says Sands China January 21, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us