Paradise Reports Operating Profit of 57.3 Billion KRW, Up 18.3% Year-on-Year
GKL Posts 45.6% Increase to 20.2 Billion KRW
Paradise and Grand Korea Leisure (GKL), both operators of foreigner-only casinos, reported strong results for the first quarter of this year, driven by an increase in customers from key markets such as Japan and China.
On May 12, Paradise announced in a regulatory filing that its consolidated operating profit for the first quarter of this year was provisionally calculated at 57.3 billion KRW, an 18.3% increase compared to the same period last year. Revenue rose by 7% to 283.3 billion KRW, and net profit increased by 16.6% to 43.1 billion KRW.
The combined revenue of the four casinos operated by Paradise (Paradise City in Incheon, Walkerhill in Seoul, Busan, and Jeju Grand) reached a record high for the quarter at 223.9 billion KRW, up 9.3% year-on-year, leading the turnaround in performance. The drop amount (the total value of chips purchased by casino patrons) was 1.6942 trillion KRW, a 2% decrease compared to the same period last year. However, the hold rate (casino win rate) rose by 1.4 percentage points, resulting in improved profitability.
A representative from Paradise stated, "The stable growth of VIP customers from Japan and China, along with an increased proportion of mass (general) customers, drove the casino's performance," and added, "In the second quarter, we expect to maintain this growth trend through the 'Super Golden Week'?which coincides with Japan's Golden Week and China's Labor Day?as well as through strategic VIP marketing initiatives such as sports marketing."
GKL, which operates Seven Luck, provisionally reported an operating profit of 20.2 billion KRW for the first quarter, a 45.6% increase compared to the same period last year. Revenue rose by 12.2% to 109.9 billion KRW, and net profit increased by 57.9% to 16.1 billion KRW.
GKL's casino drop amount for the first quarter was 826.9 billion KRW, a 9.7% decrease year-on-year. However, the hold rate increased by 2.9 percentage points to 13.1%, contributing to the rise in operating profit. Casino revenue also grew by 15.5% to 108.2 billion KRW. During this period, the number of casino visitors was 227,000, a 7.2% increase compared to the same period last year.
A GKL representative stated, "To attract overseas casino customers, we are actively conducting marketing activities, such as dispatching staff directly to major Asian countries including Japan, Taiwan, and Mongolia to meet VIP customers," and added, "We are also actively organizing customized events such as VIP baccarat tournaments and dinner shows tailored to individual customers and nationalities to prevent the departure of existing customers."
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