GGRAsia – Korea’s Paradise Co casino revenue up 10 pct by end 3Q

Korea’s Paradise Co casino revenue up 10 pct by end 3Q

Oct 05, 2016 Newsdesk Latest News, Rest of Asia, Top of the deck

Casino revenue at South Korean gaming operator Paradise Co Ltd rose approximately 19 percent year-on-year in September, it said in a filing to the Korea Exchange on Wednesday.

Paradise Co’s aggregate casino revenue for the nine months to September 30 inclusive was KRW453.46 billion (US$406.9 million), an improvement of nearly 10.4 percent on the prior-year period.

September casino revenue was KRW41.64 billion, compared to approximately KRW35.00 billion in the prior-year period.

Union Gaming Securities Asia Ltd said in a note on Wednesday, giving commentary on Paradise Co’s September numbers: “Chinese VIP volume grew 1 percent year-on-year in September, the first year-on-year growth for Chinese VIP in 24 months…

“While not exactly apples-to-apples given that Chinese VIP gamblers in Korea tend to be of much lower value than Chinese VIPs in Macau, we are encouraged that any established market is beginning to see growth in Chinese VIP,” added analyst Grant Govertsen.

Judged month-on-month, Paradise Co’s September casino revenue in aggregate was down approximately 28.2 percent compared to August.

The company said the figures were based on Paradise’s casino business division, namely its properties at: Walkerhill in the national capital Seoul; Incheon Casino near Incheon International Airport; Jeju Grand on the holiday island of Jeju; and Busan Casino in the southern port city of Busan.

During the September reporting period, table games revenue for the group rose 21.7 percent year-on-year, to approximately KRW38.63 billion. But the monthly tally was 30.4 percent down on August’s.

Gaming machine revenue in September was KRW3.01 billion, down 7.8 percent year-on-year, but up approximately 23.5 percent month-on-month compared to August.

Table drop – the amount of cash exchanged for chips by customers at the firm’s gaming tables – rose approximately 4.7 percent year-on-year in September, to KRW389.62 billion.

In the nine months to September 30, aggregate table games revenue was approximately KRW426.68 billion, up nearly 11.7 year-on-year. The tally for gaming machine revenue in the first three quarters of 2016 was approximately KRW26.78 billion, a decline of 6.7 percent from the prior-year period.

Table drop for the first nine months of 2016 was approximately KRW3.60 trillion, an increase of 2.1 percent judged year-on-year.