Leading South Korean foreigner-only integrated resort operator Paradise Co has reported a 2Q21 net profit of KRW23.5 billion (US$20.4 million), but an EBITDA loss of KRW2.5 billion (US$2.2 million), with rising hotel volumes making amends for sluggish casino sales.
According to the company’s financial statements for the June quarter, total sales reached KRW84.6 billion (US$73.3 million), up 13.4% year-on-year but down 12.4% versus the March quarter as COVID-19 continues to impact operations.
Casino sales of KRW30.6 billion (US$26.5 million) were down 14.0% year-on-year and 19.2% quarter-on-quarter, however hotel sales increased 79.8% and 39.1% respectively to KRW21.6 billion (US$18.7 million).
Much of that improvement was felt at the company’s integrated resort Paradise City, a partnership with Japan’s Sega Sammy Holdings, where hotel sales grew 96.3% to KRW16.9 billion (US$14.6 million) thanks to eased social distancing rules.
However, casino sales at Paradise City were down 12.9% year-on-year and by more than 50% versus the March quarter to KRW13.9 billion (US$12.0 million). The property recorded an EBITDA loss of KRW1.9 billion (US$1.6 million) and a net loss of KRW27.8 billion (US$24.1 million).
Notably, Paradise Co’s casino sales were the lowest since the March quarter of 2020 with declines across all four properties – Paradise Walkerhill in Seoul, Busan Casino, Jeju Grand and Paradise City in Incheon.
South Korea continues to be impacted by the pandemic, with the 2,223 new cases reported Wednesday the highest single day figure since the start of the pandemic.
