Korea’s leading foreigner-only casino operator, Paradise Co, reported a net profit of KRW42.7 billion (US$31.0 million) in the three months to 30 September 2022, reversing the KRW10.6 billion (US$7.85 billion) loss in the same period last year and widening the KRW10.8 billion (US$8.0 billion) gain from Q2.
The improved performance was the result of rising casino revenues at its four casinos – Paradise Walkerhill in Seoul, Jeju Grand, Busan Casino Paradise and Paradise City in Incheon – with group-wide casino revenue rising 148% year-on-year and 59% quarter-on-quarter to KRW71.5 billion (US$53.0 billion).
In its 3Q22 results announcement, the company attributed its profitability to “casino recovery caused by Japan VIPs.”
The three casinos operating directly under the Paradise subsidiary, Walkerhill, Jeju Grand and Busan Casino Paradise, saw casino revenue grow 59% year-on-year to KRW71.5 billion (US$53.0 billion). EBITDA of KRW24.2 billion (US$17.9 billion) improved on the KRW10.4 billion (US$7.70 billion) gain reported in 3Q21 while net profit of KRW30.7 billion (US$22.7 billion) reversed a KRW1.63 billion loss (US$1.21 billion).
At Paradise City – a joint venture in which Paradise Co owns 55% and Japan’s Sega Sammy Holdings 45% – casino sales grew 56.3% year-on-year and 142% quarter-on-quarter to KRW44.5 billion (US$33.0 billion).
Adjusted EBITDA of KRW25.2 billion (US$18.7 billion) was just about double year-on-year while the property crept back to a profit of KRW1.17 billion (US$867,000 billion), having reported losses of KRW11.3 billion (US$8.37 billion) in 3Q21 and KRW21.0 billion (US$15.6 billion) in 2Q22.
The company noted that hotel sales at Paradise City exceeded 3Q19 levels by 35% with strong demand pushing up ADR.
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