GGRAsia – Paradise Co posts US$29mln 3Q profit, revenue up 56pct

Paradise Co posts US$29mln 3Q profit, revenue up 56pct

Nov 10, 2022 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 just under KRW39.37 billion (US$28.7 million), according to a Thursday filing to the Korea Exchange.

That compared with a net loss of KRW6.19 billion a year earlier. Judged sequentially, net profit attributable to shareholders rose by 111.6 percent, stated the company.

Paradise Co reported aggregate sales of KRW189.49 billion in the three months to September 30, up 55.6 percent from the prior-year period. Measured quarter-on-quarter, they were up 80.1 percent.

Third-quarter casino sales rose by 59.0 percent year-on-year, to KRW71.46 billion. They were up 148.0 percent from the preceding quarter.

Operating profit for the reporting period was KRW38.35 billion, compared with KRW4.81 billion a year ago. The group had reported an operating loss of nearly KRW20.64 billion in the second quarter this year.

In a separate presentation published on Wednesday, Paradise Co said its third-quarter operating profit was “backed” by a recovery in its casino business, supported by the return of Japanese VIP patrons.

Visa-free entry to South Korea has been permitted since August for respective holders of travel documents issued by either Japan, Taiwan or Macau.

On June 1, South Korea had restarted several short-term visa programmes for foreign visitors, having suspended them for circa two years, during the Covid-19 pandemic crisis.

Paradise Co said additionally that an increase in quarterly hotel accommodation sales had been “backed by strong domestic demand in the third quarter”. Such sales rose 44.3 percent year-on-year, to KRW33.39 billion. Quarter-on-quarter they were up 17.6 percent.

Sales from “integrated resort” operations – from its venture with Japan’s Sega Sammy Holdings Inc at the Paradise City resort at Incheon – rose 51.6 percent year-on-year, to just over KRW78.90 billion. Judged sequentially, such sales were up 74.5 percent.

The integrated resort sales figure incorporates casino, hotel and theme park sales at Paradise City.

In its own right, Paradise Co runs the casino venues Walkerhill in Seoul; Paradise Jeju on Jeju island; and a property in the port city of Busan.