GGRAsia – Paradise Co posts US$22mln 2Q profit, up 320pct q-o-q

Paradise Co posts US$22mln 2Q profit, up 320pct q-o-q

Aug 10, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck

Paradise Co Ltd, an operator of foreigner-only casinos in South Korea, reported net profit attributable to shareholders of KRW29.41 billion (US$22.3 million) for the three months to June 30, according to a presentation published on Thursday. That was up 320.7 percent from the preceding quarter, and 58.1-percent higher than a year earlier.

The casino firm reported second-quarter aggregate sales of almost KRW275.29 billion, up 43.7 percent sequentially, and a 161.6-percent increase from the prior-year period.

The company said casino sales in the April to June period increased 89.4 percent quarter-on-quarter, to just below KRW134.40 billion. They were up 366.4 percent from a year earlier.

Casino sales referred to the three casino venues Paradise Co runs directly: Walkerhill in Seoul; Paradise Jeju on Jeju island; and a property in the port city of Busan.

The company reported earnings before interest, taxation, depreciation, and amortisation (EBITDA) of just below KRW75.00 billion, up 78.8 percent sequentially. The EBITDA figure stood at KRW2.91 billion in the prior-year period.

Sales from “integrated resort” operations – from its venture with Japan’s Sega Sammy Holdings Inc at the Paradise City resort (pictured) at Incheon – rose 19.9 percent quarter-on-quarter, to nearly KRW109.41 billion. Judged year-on-year, such sales increased 142.0 percent.

The integrated resort sales figure incorporates casino, hotel and theme park sales at Paradise City. Casino sales at Paradise City stood at KRW82.20 billion in the second quarter, up 29.7 percent sequentially, and a 346.4-percent increase from the prior-year period.

The Paradise City property generated EBITDA of KRW28.35 billion, up 17.5 percent quarter-on-quarter, and an increase of 573.9 percent year-on-year.

Paradise Co said sales continued to grow in the second quarter, driven by Japanese customers and mass-market patrons, which helped to offset the “slow recovery in China markets”.