GGRAsia – S. Korea’s Paradise Co 1Q casino revenue down 10pct

S. Korea’s Paradise Co 1Q casino revenue down 10pct

Apr 06, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck

Casino revenue at foreigner-only casino operator Paradise Co Ltd in South Korea slipped 10.8 percent year-on-year in March. Such revenue was nearly KRW39.26 billion (US$34.9 million), compared to KRW44.03 billion in the prior-year period.

For the whole of the first quarter, Paradise Co’s casino revenue was down 9.5 percent year-on-year. It stood at approximately KRW124.93 billion for the year as of March 31, compared to KRW137.97 billion in the prior-year period.

In the month of March, table revenue slipped 11.9 percent year-on-year, to KRW36.36 billion, from KRW41.28 billion in the prior-year period.

March 2017 machine revenue for the firm was up 5.2 percent year-on-year, at KRW2.89 billion, versus just under KRW2.75 billion for the equivalent month in 2016.

First-quarter 2017 casino drop – measured as the amount of cash exchanged for chips by customers at casino tables during the period – was down 2.8 percent year-on-year, at nearly KRW1.20 trillion, compared to KRW1.23 trillion in the first three months of 2016, the firm added in a Wednesday filing to the Korea Exchange.

Paradise Co said all the figures were based on what its “casino business division”, comprising the venues Walkerhill in Seoul (pictured); Jeju Grand on Jeju Island; a property at Incheon; and one at Busan. Jeju Lotte is not included in the monthly data.

Paradise Co currently operates five foreigner-only casinos in South Korea. The country currently has 17 casinos but only one – Kangwon Land in a remote upland area – is allowed to serve South Korean nationals.

On April 20 Paradise Co will open Paradise City, a large-scale new casino resort close to Incheon International Airport and that will target foreign tourists. It is in collaboration with Tokyo-based Japanese pachinko operator Sega Sammy Holdings Inc.

Brokerage Aegis Capital Corp said in an early March note that a political row between China and South Korea regarding the placement of a U.S. missile system in the latter country could benefit Macau by diverting Chinese tourists away from South Korea and toward the special administrative region.