South Korea’s leading foreigner-only casino operator Paradise Co booked a 38.2% year-on-year increase in sales in 1Q24, also 9.5% higher sequentially, to KRW264.8 billion (US$193 million), aided by improvements in the mass market and Japanese VIP segments.
The improvement included a 44.1% increase in casino sales to KRW102.3 billion (US$74.6 million), while hotel sales grew by 3.7% to KRW26.3 billion (US$19.2 million) and integrated resort sales by 45.0% to KRW132.3 billion (US$96.5 million).
EBITDA came in at KRW68.1 billion (US$49.7 million), up 62.4% year-on-year, and net profit at KRW37.0 billion (US$27.0 million), up 291%.
Results were strong across the board, with the company’s joint venture project, Incheon integrated resort Paradise City, seeing sales rise 45.0% to KRW132.2 billion (US$96.4 million) on a 61.8% rise in casino sales to KRW102.6 billion (US$74.8 million). Compared to 1Q19, the company said it recorded a 70% increase in drop rate from Japanese VIPs and an 89% increase in drop from mass market play. Hotel occupancy and room rate also increased on inbound visitors and domestic demand.
At subsidiary Paradise, which runs casino operations outside of the Paradise City IR, sales grew by 42.9% year-on-year to KRW106.0 billion (US$77.3 million) with casino sales up 44.1% to KRW102.3 billion (US$74.6 million). The company also pointed to Japanese VIPs and mass gaming as being above 2019 levels.
According to details contained in its results presentation, 1Q24 saw the company’s highest ever casino drop, with the rise in Japanese VIPs complemented by improving visitation from mainland China.
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