South Korea’s leading foreigner-only casino operator Paradise Co has reported a 161% year-on-year increase in sales to KRW275.3 billion (US$209 million), including casino sales of KRW134.4 billion (US$102 million) – up 366% year-on-year and 89.4% quarter-on-quarter, not including its Incheon integrated resort Paradise City.
Releasing its quarterly report on Thursday, Paradise said sales growth had continued thanks to customers from Japan and “mass markets”, which has helped the slow recovery from China more than previously expected.
At Paradise City, casino sales of KRW82.2 billion (US$62.4 million) were up 346% year-on-year and 29.7% quarter-on-quarter while hotel sales of KRW23.3 billion (US$17.7 million) were largely flat compared to both 2Q22 and 1Q23.
Paradise said the property has been gradually recovering since the easing of COVID-19 restrictions last year, including improving margins thanks to the return of Japanese VIPs. Drop amount from Japanese VIPs was now back to 113% of 2019 levels in 2Q23, although Chinese VIPs have only clawed back to 44%, it explained. Paradise holds a 55% stake in Paradise City with the other 45% held by Japan’s Sega Sammy Holdings.
Combining Paradise City with the company’s other three casinos in Seoul, Busan and Jeju, casino sales in Q2 were KRW216.5 billion (US$164 million), up from KRW47.2 billion (US$35.8 million) in 2Q22 and from KRW134.4 billion (US$102 million) in 1Q23. Casino sales at Seoul’s Paradise Walkerhill were an impressive KRW118.6 billion (US$90.0 million), making it the company’s highest earning site.
Net profit in Seoul, Busan and Jeju fell by 27.2% year-on-year to KRW18.2 billion (US$13.8 million) while Paradise City saw profit of KRW15.3 billion (US$11.6 million) reverse a KRW21.0 billion (US$15.9 million) loss a year earlier.
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