Paradise Co Ltd, an operator of foreigner-only casinos in South Korea, reported a higher fourth-quarter loss compared to the deficit in the equivalent quarter in 2017.
The loss for the three months to December 31 was just over KRW17.07 billion (nearly US$15.2 million), compared to KRW11.80 billion in the year-earlier period.
The group did not give detailed commentary on the reasons for its persisting quarterly loss judged year-on-year.
It noted however that at Paradise Sega Sammy Co Ltd – an entity which runs the Paradise City casino resort (pictured) near Seoul’s main air hub, Incheon International Airport – the quarterly net loss had widened greatly, to KRW42.46 billion, compared to KRW3.1 billion in fourth-quarter 2017.
Paradise Sega Sammy is a partnership between Paradise Co and Japan’s Sega Sammy Holdings Inc. Paradise Co has an equity-accounted interest in the partnership.
Paradise Co said “operation costs” had come into play since Paradise City’s phase-one second stage had opened on September 21 last year. In November it was announced that a theme park would open at Paradise City in the first half this year.
The firm noted in its latest set of results that Paradise City – which launched in April 2017 – had set a new record quarterly high for casino drop – i.e., the amount wagered by players before deduction of prizes – in the fourth quarter 2018. Such quarterly casino sales at Paradise City were KRW71.80 billion, an increase of 16.6 percent on the nearly KRW61.60-billion casino drop recorded in the fourth quarter 2017.
On a separated basis, the Paradise Co casino venues Walkerhill in Seoul and Jeju Grand on Jeju island, recorded fourth-quarter casino sales of KRW104.20 billion, up 10.1 percent year-on-year.
The Paradise Hotel Busan in the port city of the same name recorded KRW21 billion in general sales for the period, an increase of 2.0 percent year-on-year, and – according to another chart – casino sales of KRW20.0 billion. Walkerhill’s casino sales were circa KRW80.7 billion, while those for Jeju Grand in the final quarter of 2018 were circa KRW7.4 billion.
Judged on a yearly basis, Paradise Co’s 2018 net loss narrowed to KRW10.97 billion, from KRW18.95 billion in full-year 2017.
In terms of Paradise Co’s fourth-quarter “soft drop” – the amount of cash exchanged for chips by customers at gaming tables – the aggregate was just under KRW1.61 trillion.
Chinese VIP players accounted for KRW541 billion of the quarterly soft drop; Japanese high rollers KRW475 billion; and VIPs from other markets KRW314 billion. Mass-market players contributed KRW277 billion.
Jan 20, 2021Moody’s Investors Service Inc says it expects the ratio of adjusted debt to earnings before interest, taxation, depreciation and amortisation (EBITDA) of Macau casino operators Melco Resorts and...
Jan 20, 2021
"The increased focus we can now bring to our gaming and amusement business [after a spin-off of the firm's cash-handling product business] will bring us closer to the customer as we align our offerings more directly with their needs"
Global president of casino equipment supplier SuzoHapp