Japan and Mass Market Share Lead... Semiannual Performance Shows Upward Trend
Paradise's operating profit in the second quarter of this year decreased by more than 40% compared to last year due to a temporary increase in marketing expenses for foreign casino VIPs. However, with visitors and drop amounts (casino customers' chip purchases) rising mainly from Japan, the half-year performance showed an upward trend.
Paradise announced on the 9th that its consolidated operating profit for the second quarter of this year was preliminarily estimated at 32 billion KRW, down 41.7% from the same period last year. Sales during the same period decreased by 0.7% to 273.3 billion KRW. The drop amount in the second quarter was 1.0703 trillion KRW, an 8% increase from the same period last year, but overall operating profit declined due to increased marketing expenses driven by the rise in VIPs.
Instead, by showing superiority in the Japanese and mass (general customer) markets, Paradise's operating profit for the first half of this year recorded 80.4 billion KRW, a 9% increase compared to the same period last year. Sales during the same period rose 15% to 538 billion KRW. Specifically, the drop amount from Japanese VIPs in the first half increased by 7% from the same period last year to 703.7 billion KRW. The Japanese mass drop amount grew by 16% to 363.1 billion KRW. The Chinese VIP drop amount rose 49% to 296.6 billion KRW.
Earlier, Paradise's drop amount as of May reached a record high of 605.6 billion KRW. Additionally, casino sales in the second quarter of this year increased by 12.8% compared to the second quarter of 2019, before the COVID-19 outbreak, and the number of VIP visitors during the same period recovered to 78.2%.
A Paradise official said, "Despite intensified competition this year, the growth in Japanese VIP and mass drop amounts in the first half helped maintain a stable market share," adding, "The improvement in Chinese VIP performance also appeared strong." They further stated, "In the second half, we will accelerate sales growth by implementing differentiated marketing based on the casino alliance, including a new VIP-only venue in the Seoul area and the Gimpo Airport lounge."
Paradise will open a hub lounge at Gimpo Airport's international terminal in October. Additionally, next month, Paradise Casino Walkerhill will establish a VIP-only venue optimized for high-roller gaming, covering 388.31㎡ (approximately 117 pyeong). The company expects this to continuously increase sales, projecting 22 billion KRW in 2025 and 32 billion KRW in 2026.
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