GGRAsia – Paradise Co casino sales up in 2018, GKL posts decline

Paradise Co casino sales up in 2018, GKL posts decline

Jan 07, 2019 Newsdesk Latest News, Rest of Asia, Top of the deck

Two of South Korea’s main foreigner-only casino operators have reported very different performances for full-year 2018. Casino revenue at foreigner-only operator Paradise Co Ltd increased by 15.8 percent in full 2018 compared to the previous year, while its market rival Grand Korea Leisure Ltd (GKL) saw casino sales fall slightly by 1.8 percent.

Paradise Co reported on Monday that it recorded casino sales of KRW638.3 billion (US$570.6 million) for the 12 months of 2018.

Last year’s table revenue rose by 15.7 percent year-on-year to KRW595.7 billion, from KRW514.8 billion the previous year. Slot machine revenue for the full year increased by 16.9 percent year-on-year, to nearly KRW42.6 billion.

For December 2018, Paradise Co’s aggregate casino revenue went up 8.4 percent from the prior-year period, to approximately KRW55.5 billion.

No commentary on the reasons for year-on-year revenue fluctuations is given in the company’s monthly updates.

Paradise Co’s latest casino figures are based on the results of four venues it operates as part of its casino business division. They are: Walkerhill in Seoul; Jeju Grand on Jeju Island; Busan Casino in the southern port city of Busan; and Paradise City (pictured), in Incheon, near the main international airport serving the country’s capital Seoul.

Paradise City – a partnership with Japanese gaming company Sega Sammy Holdings Inc – completed its phase one last year, with the opening of more non-gaming facilities. Phase one of the scheme had an aggregate investment of nearly US$1.4 billion, according to its promoters.

The promoters have said new facilities under the scheme’s second phase are due to open in the first half of this year, including the Wonderbox indoor theme park.

GKL meanwhile saw its total casino revenue decline in 2018, due to a fall in machine sales, according to a filing on Friday. The company reported aggregate casino sales of KRW482.4 billion. Table revenue for the period was KRW424.9 billion, up 0.1 percent from full-year 2017, while machine revenue declined by 14.4 percent year-on-year, to KRW57.5 billion.

The company posted casino sales of nearly KRW36.1 billion in December, down 22.8 percent from the prior-year period.

GKL is a subsidiary of the Korea Tourism Organization, which in turn is affiliated to South Korea’s Ministry of Culture, Sports and Tourism. The casino operating entity runs three foreigner-only casinos in South Korea under the Seven Luck brand: two in the capital Seoul and one in the southern port city of Busan.

GKL appointed in June Yoo Tae-Yeol as its new chief executive.