Korea’s leading foreigner-only casino operator Paradise Co saw its casino sales fall by 43.7% for the three months to 30 June 2017 – the first period to incorporate its newly opened Paradise City integrated resort in Incheon.
Paradise Co announced casino sales of KRW79.85 billion (US$70.8 million) for 2Q17, down from KRW141.80 billion (US$125.8 million) in the same period 12 months earlier, with gross profit down 90.2%to KRW4.03 billion and an operating loss of KRW7.78 billion.
EBITDA tumbled from KRW30.68 billion in 2Q16 to KRW2.86 billion in the red.
The company attributed the declines to “weak VIP luck and decline in Chinese VIPs as a result of the THAAD issue.”
Soft drop from Chinese VIPs plummeted 35.6% year-on-year to KRW391 billion, easily offsetting slight gains in mass market revenue and soft drop from non-Chinese VIPs.
Paradise City, Paradise Group’s joint venture with Japanese gaming manufacturer Sega Sammy which opened for business on 20 April, notched casino sales of KRW36.9 billion – well below that of Paradise Walker-hill in Seoul which recorded sales of KRW62.3 billion, down from KRW102.3 billion in 2Q16.
Paradise City’s operating loss was KRW18.08 billion, with the company stating that the casino “is slowly ramping up due to (the) unfavorable political climate.”
The “new pool of casino customer continues to grow every month backed by its marketing efforts and strengthened brand,” it said.
