Paradise Co swings to 3Q profit as casino sales soar

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

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South Korean foreigner-only casino operator Paradise Co Ltd on Thursday reported net income attributable to shareholders of approximately KRW34.21 billion (US$29.5 million) for the three months ended September 30, up by 626.3 percent in year-on-year terms. That compared with a net loss of nearly KRW2.06 billion for the second quarter of 2019.

The company reported operating income of just above KRW41.06 billion for the third quarter, an increase of 280.0 percent from a year earlier, according to a filing to the Korea Exchange.

The year-on-year increase in net income for the third quarter was supported by a jump in revenue during the reporting period. Paradise Co said total revenue rose by 30.4 percent year-on-year in the three months to September 30 to nearly KRW274.38 billion, from approximately KRW210.48 billion in the prior-year quarter.

The third-quarter revenue included casino sales of nearly KRW215.7 billion, up 30.9 percent from a year earlier.

Paradise Co’s casino figures are based on the results of four venues it operates in 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.

The casino operator said casino sales in its Walkerhill, Jeju Grand and Busan casinos increased by an aggregate 11.0 percent year-on-year to KRW107.72 billion. Net profit for the aggregate of the three properties jumped by 671.0 percent to KRW22.56 billion.

At Paradise City resort – a venture with the Japanese conglomerate Sega Sammy Holdings Inc – casino and hotel sales hit a “record high again”, said Paradise Co. Casino revenue at the property in the July to September period was nearly KRW107.88 billion, up 59.4 percent from the year ago period, added the firm.

The Paradise City venture recorded a net profit of about KRW16.31 billion in the third quarter of 2019, compared with a net loss of KRW266 million in the prior-year period.

Group-wide casino drop stood at KRW1.71 trillion in the three months to September 30, up 20.8 percent from a year earlier but down 7.4 percent sequentially. Japanese VIP patrons accounted for 35.0 percent of the aggregate drop in the reporting period.

The group said all of its business segments recorded an increase in revenue during the reporting period. But the firm’s costs rose by 17.2 percent year-on-year during the third quarter, to about KRW211.25 billion.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) jumped by 120.4 percent, to approximately KRW65.61 billion.

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