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Korea’s Paradise Co. records 74% quarterly drop in operating profits for 4Q23


South Korean casino operator, Paradise Co. Ltd, reported a considerable drop in operating profits in the fourth quarter of 2023.

According to its latest financial report, Paradise registered KRW14.7 billion ($11 million) in operating profits, a figure that represents a 74 percent decrease from the KRW57.1 billion ($44 million) reported in the previous quarter.

Still, it represented a smaller 8 percent drop from the same quarter of the previous year.

The foreigner-only casino operator in South Korea also saw its net profit attributable to shareholders revert to losses in the last three months of the year, with some KRW5.2 billion ($3.9 million) in losses on the books.

Paradise Co. specializes in operating foreigner-only casinos, including Walker-Hill, Jeju, Incheon Paradise City, and Busan Casino.

The group’s total sales witnessed a slight 15.3 percent quarter-to-quarter decrease, reaching KRW241.8 billion ($181.5 million). Revenue from casino sales amounted to approximately KRW93.84 billion ($70.4 million), marking a 19 percent sequential drop.

During the same period, Paradise reported KRW93.8 billion in casino revenue, a 58 percent jump from the same period of last year, but a 19 percent fall from the previous quarter. Soft Drop, or the amount of cash exchanged for chips by customers at the table, also reached KRW757 billion ($568,9 million) for Japanese punters and KRW302 billion ($226.9 million) for Chinese gamblers.

The operator highlighted that China resumed group tours to South Korea after August 2023, ending a six-and-a-half year hiatus since March 2017.

Sales from the “integrated resort” operations, a partnership with Japan’s Sega Sammy Holdings Inc. at the Paradise City resort in Incheon, experienced a 13.0 percent decrease quarter-on-quarter, totaling approximately KRW115.3 billion ($86.6 million). However, comparing year-on-year figures, these sales saw a notable increase of 14.5 percent.

The integrated resort sales encompass revenue from the casino, hotel, and theme park at Paradise City.

Casino sales specifically amounted to KRW84.55 billion ($63.5 million) for the three months ending on December 31st, marking a sequential decline of 13.6 percent but a substantial year-on-year growth of 17.6 percent.

The Paradise City establishment generated an EBITDA of KRW15.56 billion ($11.6 million), reflecting a significant 56.5 percent decrease quarter-on-quarter and a notable 43.8 percent decline year-on-year.

In the entirety of 2023, overall sales reached nearly KRW994.20 billion ($747.3 million), representing a robust 69.2 percent increase compared to the previous year. Casino sales notably surged by 117.8 percent year-on-year, reaching KRW415.01 billion ($311.9 million).

Paradise Co disclosed a full-year EBITDA of KRW228.77 billion ($171.9 million), marking a healthy 23 percent rise from the preceding year, alongside a net profit of KRW66.36 billion ($49.8 million), which translates to a 164.3 percent increase year-on-year.

AGBrief Editorial
AGBrief Editorial
The AGBrief Editorial Team is a group of contributors living around the world that are connected to Asia Gaming Brief. They are active members in pursuing the sources of our news, making them reliable and accurate for our readers.