HomeNewsSouth KoreaParadise Co. 1Q profit falls 34.9% as Hyatt costs offset revenue growth

Paradise Co. 1Q profit falls 34.9% as Hyatt costs offset revenue growth

South Korea’s foreigner-only casino operator Paradise Co. reported first-quarter revenue of KRW293.97 billion ($203.35 million) for the three months ended March 31st, 2026, up 3.8 percent year-on-year, while operating profit fell 34.9 percent to KRW37.31 billion ($25.81 million) due to higher operating expenses linked to its Hyatt acquisition, labor costs and marketing spending.

The company said operating expenses increased by 13.6 percent year-on-year, driven by Hyatt-related operating costs, including labor and depreciation expenses, alongside higher personnel and advertising costs. Paradise said the Hyatt acquisition contributed approximately KRW6.1 billion ($4.22 million) in consolidated revenue during the quarter.

Net profit for the quarter declined 56.3 percent year-on-year to KRW18.85 billion ($13.04 million), while net profit attributable to controlling shareholders fell 46.8 percent to KRW16.57 billion ($11.46 million).

Casino revenue for the quarter rose 0.5 percent year-on-year to KRW116.13 billion ($80.33 million), while hotel revenue increased 12.9 percent to KRW27.41 billion ($18.96 million). Paradise said overall casino drop amount rose 3.6 percent year-on-year to KRW1.76 trillion ($1.22 billion), although hold rate declined by 0.4 percentage points to 12.2 percent. Mass-market drop amount increased 16.8 percent year-on-year.

Within its standalone casino operations, Paradise said Busan casino revenue surged 133 percent year-on-year to KRW30.9 billion ($21.38 million), offsetting a 16.3 percent decline at Walkerhill Casino, where revenue totaled KRW79.6 billion ($55.06 million).

Paradise Hotel Busan also posted stronger performance during the quarter, with revenue rising 14.1 percent year-on-year to KRW24.18 billion ($16.72 million). Operating profit climbed 164.4 percent to KRW2.69 billion ($1.86 million), supported by higher domestic and international tourism demand. Occupancy reached 75.6 percent, the highest first-quarter level in five years, according to the company.

Separately, Paradise reported April casino sales of KRW87.92 billion ($60.82 million), up 80.6 percent from March and 30.7 percent from a year earlier. 

Table game sales rose 89.9 percent month-on-month and 29.1 percent year-on-year to KRW82.19 billion ($56.85 million), while machine game sales increased 5.8 percent month-on-month and 59.7 percent year-on-year to KRW5.73 billion ($3.97 million).

Viviana Chan
Viviana Chanhttps://agbrief.com/
Viviana Chan is an editor, interpreter, and journalist. With over a decade of experience, she writes in English, Chinese, and Portuguese. Viviana started her career in Macau-based newspapers, where she became passionate about the region's social, financial, and cultural development. Her writing focuses on the economy, emerging industries, gaming development, political affairs, and cross cultural-exchange in the business and cultural domains. She is avid for news and eager to discover and cover stories that generate public relevance.

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