Korea’s Paradise Co saw its net profit fall by 56.3% to KRW18.9 billion (US$12.9 million) in the three months to 31 March 2026, impacted by sluggish casino sales in March and higher costs following the acquisition of the Grand Hyatt Incheon West Tower at integrated resort Paradise City.
The company said in its Q1 financial presentation that although consolidating Hyatt revenue into the group had resulted in a 3.8% year-on-year increase in sales to KRW294.0 billion (US$201 million), it had also taken on higher operating expenses, labor and advertising costs. As a result, EBITDA also declined by 24.4% to KRW57.5 billion (US$39.3 million).
At Paradise City, total sales grew 4.9% year-on-year to KRW145.9 billion (US$99.7 million) including casino sales of KRW112.7 billion (US$77.1 million). The company explained that total drop amount also grew by 4.6% year-on-year despite sluggish drop from the Chinese VIP sector. However, the impact of Hyatt resulted in a 38.2% fall in EBITDA at the property to KRW26.2 billion (US$17.9 million) and a 79.4% fall in net profit to KRW5.60 billion (US$3.8 million). Paradise City is 55% owned by Paradise and 45% by Japan’s Sega Sammy.
At the three-wholly-owned casinos under Paradise in Seoul, Busan and Jeju, casino sales edged up 0.5% year-on-year to KRW116.1 billion (US$79.4 million) on a 2.7% increase in drop amount. While Paradise Walkerhill saw revenue fall 16.3% year-on-year to KRW79.6 billion (US$54.4 million), the company said Busan recorded a 133% increase to KRW30.9 billion (US$21.1 million). Cost of sales also increased though, with Paradise’s wholly-owned properties seeing EBITDA fall 12.1% to KRW25.6 billion (US$17.5 million) and net profit by 17.0% to KRW12.5 billion (US$8.5 million).
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