South Korean casino operator Paradise Co’s 16Q1 earnings were shy of analyst estimates, due to higher casino labor cost, advertising costs and complimentary costs.
The foreigner only casino saw operating profit fall 32.2 percent year on year to KRW 15.3 billion (US$13.1 million), missing consensus estimates of KRW 19-20 billion.
Sales rose 3.7 percent year on year in the first quarter, and net profit fell 61.1 percent year on year.
Morgan Stanley said the losses were due to higher cost, with complimentary costs rising 18 percent year on year, accounting for 18.5 percent of casino sales. Casino labor cost rose 23 percent, and advertising costs rose 133 percent.