Easing of travel restrictions lead to a strong recovery from operators Grand Korea Leisure, Paradise in 2Q22.
In a filing to the Korea Exchange last week, Grand Korea Leisure (GKL) engaged in casino business reported net revenues for July 2022, up 17% on the month-on-month basis at KRW28.61 billion ($22 million) and up 4 times on year-on-year basis from KWR7.6 billion ($6 million).
On a month-on-month basis another South Korean enterprise, Paradise Group, doubled the growth of top-line at KRW27.4 billion (US$21 million) for the month of July 2020, from KRW13 billion ($10million) in June 2022.
On a year-on-year basis the July 2021 numbers shot-up 4 times, from KRW6.9 billion ($5.3 million) reported during the same quarter last year.
One of the main reasons for the phenomenal rise in revenue of GKL as well as Paradise on year-on-year basis is due to ease in travel restrictions.
Last year due to pandemic, most of the casinos across Korea were either closed or constrained in terms of servicing limited number of clients, due to stringent travel restrictions.
Location, location, location
In GKL July 2022 revenue pie out of the KRW28.61 billion ($22 million) net sales as reported by the company for the month of July 2022, 60 percent contribution came from Seoul Gangnam Casino at KRW17.21 billion ($13 million).
Whereas 35 percent sales was registered from Seoul Hilton Casino comprising of KRW10.07 billion ($8 million) and Busan Lotte Casino contributed merely 5 percent to the top-line with sales of KRW1.33 billion ($1 million).
Of the total total revenue pie of KRW27.4 billion ($21 million) of Paradise Group for the month of July, Walkerhill contributed 49 percent sales at KRW13.47 billion ($10million), followed by 42 percent from P-City at KRW12 billion ($9 million), 7 percent from Busan at KRW1.64 billion ($1 million) and 1 percent from Jeju Grand at KRW321 million ($0.25 million).
Tables Vs Slots
The July 2022 filing of GKL indicates that Table Games segment contributed 91 percent to the topline of the company, whereas Slot Machine segment contributed 9 percent.
Table-game segment sales for July 2022 shot-up 18 percent at KRW26.09 billion ($20 million) from KRW6 billion ($18 million) in June 2022.
Whereas on month-on-month basis Machine Games segment revenues in July 2022 grew 10 percent at KRW2.5 billon ($2 million) from KRW2.3 billion ($1.8 million).
Out of the total KRW27.4 billion ($21 million) revenues of Paradise Group for the month of July 2022, KRW24.9 billion ($19 million) which is 91 percent of the total revenue pie came from Table segment, whereas balance 9 percent revenue comprising of KRW 2.5 billion ($2 million) came from the slot segment.