Paradise Co Ltd, an operator in South Korea of foreigner-only casinos, says it moved to operating profit and positive earnings before interest, taxation, depreciation and amortisation (EBITDA) for the third quarter ended September, a performance helped by “significant cost savings”.
That is according to a filing on Tuesday. Paradise Co had third-quarter operating profit of KRW4.81 billion (US$4.09 million), and EBITDA of nearly KRW29.65 billion, versus an operating loss of nearly KRW31.06 billion and negative EBITDA of KRW5.23 billion during the prior-year period.
In the reporting quarter, Paradise Co noted “stable” gaming demand from what it termed ‘local’ patrons – in likelihood South Koreans with some form of foreign ID – and expatriate patrons. There was also growth in group-wide hotel sales thanks to “strong local leisure demand”, according to the firm’s commentary included in the earnings results summary.
The casino operator recorded a net loss of KRW10.58 billion in the third quarter, narrowed from the net loss of KRW31.99 billion in the prior-year quarter.
The group’s overall third-quarter sales judged year-on-year rose 34.5 percent, to KRW121.76 billion, and were up 43.8 percent quarter-on-quarter.
Third-quarter casino sales amounted to KRW44.96 billion, up by 12.1 percent year-on-year, and 47 percent sequentially.
Paradise City casino resort (pictured) at Incheon, near Seoul’s main airport, recorded casino sales of KRW31.12 billion for the reporting quarter, up by 105.7 percent year-on-year and by 123.4 percent sequentially. Paradise Co shares the economic interest in Paradise City, with Japanese group Sega Sammy Holdings Inc, via the Paradise Segasammy Co Ltd entity.
Paradise Segasammy’s third-quarter EBITDA was KRW13.96 billion, versus the negative EBITDA registered in the preceding quarter and the prior-year quarter. The venture had seen a negative EBITDA of KRW11.04 billion in the third quarter last year, and negative EBITDA of KRW1.85 billion in the second quarter.
During the reporting period, the firm reopened from July 16 the theme park and spa at Paradise City. The property has also seen growth in hotel sales, thanks to “strong domestic leisure demand”.
Hotel Art Paradiso – one of the two hotels at Paradise City – was temporarily shuttered on July 1 and remained so “until further notice,” Paradise Co said.
Paradise Co’s other gaming operations are at: Walkerhill in Seoul; Jeju Grand on Jeju Island; and Busan Casino in the southern port city of Busan.
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