GGRAsia – S. Korea’s Paradise Co casino revenue up 34 pct in Sept

S. Korea’s Paradise Co casino revenue up 34 pct in Sept

Oct 11, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck

Casino revenue at South Korea’s foreigner-only casino operator Paradise Co Ltd rose 34.1 percent year-on-year in September, according to a Wednesday filing by the company to the Korea Exchange.

Such revenue was approximately KRW54.70 billion (US$48.1 million), compared to about KRW40.78 billion in September of 2016.

September 2017 table revenue rose 37.9 percent to nearly KRW52.09 billion, from nearly KRW37.77 billion in the prior-year reporting period.

Paradise Co’s machine revenue fell 13.3 percent in September this year, to KRW2.61 billion, from just over KRW3.01 billion in September 2016.

No commentary on the reasons for year-on-year revenue fluctuations is given in the company’s monthly updates.

Chinese customers are a key target market for Paradise Co and other foreigner-only venues in South Korea, but it cannot be assumed there is any correlation between the aggregate number of such tourists visiting the country and that casino firm’s business performance.

Data from the Korea Tourism Organization (KTO) show that in September 2016, visitor numbers from China rose 22.8 percent year-on-year. Figures for September 2017 have not yet been published on KTO’s English-language website. In August this year, Chinese visitor numbers to the country fell 61.2 percent year-on-year, according to KTO. In the same month, casino revenue for Paradise Co fell only 8.4 percent year-on-year.

The first phase of Paradise City (pictured) – a venture between Paradise Co and Japanese pachinko operator Sega Sammy Holdings Inc – opened on April 20, and new venue openings are typically associated with a bounce in casino revenue as Asian players test their luck, analysts have said.

Several investment analysts have suggested other casino jurisdictions – including Malaysia – might stand to benefit from any slowdown in Chinese tourism to South Korea.

For the first nine months of 2017, Paradise Co’s aggregate casino revenue was down 11.9 percent from the prior-year period, to just over KRW398.75 billion.

Table revenue for the calendar year to September 30 was down 12.7 percent year-on-year, to nearly KRW371.81 billion. Machine revenue for the first nine months this year was up 0.6 percent, to slightly more than KRW26.94 billion.

Table drop amount – the amount of cash exchanged for chips by customers at the table – rose 18.5 percent year-on year in September, to just over KRW461.71 billion. Table drop for the first nine months of 2017 rose 3.6 percent year-on-year, to just over KRW3.73 trillion.

Paradise Co’s latest 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, in Incheon, near the main international airport serving the country’s capital Seoul.