Paradise Co Ltd, an operator in South Korea of foreigner-only casinos, reported positive earnings before interest, taxation, depreciation and amortisation (EBITDA) for the fourth quarter of 2021, helped by “stable demand” from its customers.
Paradise Co said its fourth-quarter EBITDA stood at KRW2.85 billion (US$2.38 million), down 90.4 percent sequentially, according to a filing on Thursday. In the fourth quarter 2020, the group produced positive EBITDA of KRW6.92 billion.
The company reported an operating loss of KRW20.34 billion for the three months to December 31, versus an operating profit of KRW4.81 billion in the previous quarter. It reported a KRW15.63-billion operating loss in fourth-quarter 2020.
For the latest reporting quarter, Paradise Co said it experienced “stable” gaming demand from what it termed ‘local’ patrons - described by investment analysts are likely to be South Koreans with some form of foreign ID – and expatriate patrons. But the company said it expected “weak casino revenue to continue” due to “prolonged negative impact from Covid-19.”
Fourth-quarter casino sales amounted to KRW49.53 billion, up 10.2 percent quarter-on-quarter, but down 9.9 percent from the prior-year period.
The group’s overall fourth-quarter sales judged year-on-year rose 7.1 percent, to KRW121.45 billion, but were down 8.5 percent quarter-on-quarter.
The group’s casino business division covers Walkerhill in Seoul, Jeju Grand on Jeju island, Paradise City (pictured) at Incheon – run via a venture with Japan’s Sega Sammy Holdings Inc – and at Busan.
The casino operator recorded a net loss of KRW40.12 billion in the fourth quarter, wider compared to a net loss of KRW6.19 billion in the third quarter. It was still an improvement from the KRW59.21-billion loss a year earlier.
For full-year 2021, Paradise Co reported positive EBITDA of KRW42.80 billion, up 3.4 percent from 2020. It posted a net loss of KRW25.22 billion, an improvement on the KRW48.74-billion loss in 2020.
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