Korea’s leading foreigner-only casino operator Paradise Co reported net profit of KRW19.7 billion (US$14.1 million) for the three months to 30 September 2024, down 72% year-on-year and 32.5% quarter-on-quarter due to low hold rate and rising comp costs, the company explained.
Adjusted EBITDA was also down 55.0% year-on-year although up 7.4% quarter-on-quarter to KRW55.7 billion (US$39.9 million).
Casino sales at its Seoul, Jeju and Busan properties – which fall directly under the Paradise Group – fell 27.1% year-on-year and 24.6% quarter-on-quarter to KRW84.4 billion (US$60.4 million) with Paradise stating that a “low hold rate [caused] a decrease in sales” while “increasing VIP customers [resulted] in rising comp costs”. Group EBITDA fell by 73.7% year-on-year and 59.4% quarter-on-quarter to KRW8.38 billion (US$6.0 million).
At integrated resort Paradise City in Incheon, a joint venture with Sega Sammy Holdings through which Paradise holds a 55% stake, total sales grew 10.5% year-on-year to KRW146.5 billion (US$104.9 million) with casino sales up 12.8% to KRW110.3 billion (US$79.0 million). Property EBITDA grew 4.9% to KRW37.5 billion (US$26.8 million) and net profit by 17.0% to KRW18.2 billion (US$13.0 million).
Paradise Co said it achieved record sales and soft drop at Paradise City in Q3 with drop amount from Japan VIPs up 10.7% year-on-year and from China VIPs up 13.6%. It also said it held “overwhelming market share” among Korea’s foreigner-only casinos for the quarter.
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