Korean casino operator Paradise Co Ltd says its US$1.1 billion Paradise City integrated resort – which launched in partnership with Japan’s Sega Sammy in April – has already turned to profit.
Announcing its 3Q17 financial results, which saw revenue rise 11.9% year-on-year and 40.2% sequentially to KRW196.1 billion, Paradise Co said that Paradise City had ramped up since opening to the point where it had now moved past breakeven.
The Paradise Sega Sammy partnership saw casino sales grow 139.5% to KRW55.5 billion, driven by a 306% increase in mass market revenue, a 116% rise in Japanese VIP drop and a 176% boost in other non-Chinese VIP drop.
The company said that Paradise City “achieved operating profit breakeven point in Q3” and had “already turned to profit.”
However Paradise Co also noted that its Paradise Walker Hill casino in Seoul had lost some business via cannibalization to Paradise City, with Walker Hill casino sales down 19.7% year-on-year to KRW100 billion. The figure nevertheless represented a 25% sequential improvement on the back of improved VIP business.
Company-wide operating profit fell 7.1% year-on-year to KRW10.2 billion but showed a significant increase on 2Q17 where Paradise Co suffered a KRW27.3 loss.
RelatedPosts
