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

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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.

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