South Korean foreigner-only casino operator Lotte Tour Development said Monday it would refinance its KRW700 billion (US$539 million) loan to the tune of KRW710 billion (US$547 million) – the same day that its Jeju casino Jeju Dream Tower reported subdued results for the month of November.
According to the company’s latest financial update, casino revenues in November grew by 446% year-on-year but fell by 9.0% compared with October to KRW18.0 billion (US$13.9 million), while hotel revenue fell by 17.9% year-on-year and 23.6% month-on-month to KRW6.75 billion (US$5.2 million).
In a separate filing, the company said its Board of Directors had approved a refinancing that would taking the total amount in existing borrowings to KRW710 billion, up from the previous KRW700 billion. Lotte Tour explained it was, “Raising funds necessary to increase and refinance (extend maturity) the KRW700 billion loan raised for the development and operation of Jeju Dream Tower Integrated Resort.”
The November casino revenue result took Jeju Dream Tower’s 11-month tally for 2023 so far to KRW38.2 billion (US$29.4 million), up 232% on the same period last year, while hotel revenue us down 22.2% year-on-year to KRW84.9 billion (US$65.4 million).
November table drop of KRW116.9 billion (US$90.0 million) was down 18.5% on October while for the first 11 months of the year it has increased by 163% to KRW1.15 trillion (US$886 million).
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