Paradise Sets New Quarterly Drop Record at Yeongjongdo Paradise City
Lotte Tour Development Maintains Upward Momentum at Dream Tower Casino
All-Time Highs in Revenue, Operating Profit, Visitor Numbers, and Drop Amount
GKL Operating Profit Expected to Surge 198% Year-on-Year
Paradise, Grand Korea Leisure (GKL), and Lotte Tour Development-the three major foreigner-only casino operators in Korea-all posted strong results in the third quarter of this year. This performance was driven by simultaneous increases in both the number of visitors from key markets such as China and Japan, and the drop amount (the total value of chips exchanged by casino customers).
Paradise announced on the 10th that, on a consolidated basis, its operating profit for the third quarter of this year was provisionally tallied at 39.5 billion won, up 9.1% from the same period last year. Revenue rose 7.5% to 288.2 billion won. By business site, the drop amount at Paradise City Casino, the integrated resort in Incheon Yeongjongdo, increased by 9.9% year-on-year, setting a new quarterly record. The combined quarterly revenue of the other three casinos-Seoul Walkerhill, Busan, and Jeju Grand-rose 18.9% compared to the same period last year.
A Paradise representative explained, "The drop amount from mass (general) customers increased by more than 20% year-on-year, reaching a quarterly record," adding, "Growth was particularly strong in the Japanese VIP market."
Lotte Tour Development, which operates the Jeju Dream Tower Complex Resort, also set new records. The company's third-quarter operating profit surged 139% year-on-year to 52.9 billion won, marking an all-time high. The previous record was 33.1 billion won in the second quarter. During the same period, revenue also reached an all-time high of 186.7 billion won.
The main driver of this turnaround was the casino business. The third-quarter net casino sales at Dream Tower Casino (total sales minus agent commissions, etc.) reached 139.3 billion won, up 65.4% from 84.2 billion won in the same period last year. The number of casino visitors in the third quarter was 172,783, surpassing the previous record of 148,475 in the second quarter, and the drop amount also hit a new high of 848.5 billion won, exceeding the previous record of 668.5 billion won in the second quarter.
GKL, which operates Seven Luck in Gangnam and Yongsan in Seoul as well as in Busan, will announce its third-quarter results on the 11th. The securities industry expects GKL's third-quarter operating profit to reach 17.3 billion won, up 198.3% year-on-year, with revenue rising 15.4% to 108.2 billion won. The drop amount is estimated at 871.1 billion won, up 4.6% from the same period last year.
The outlook for these foreigner-only casinos in the fourth quarter is also positive. The temporary visa-free policy for Chinese group tourists, which has been in effect since late September, is expected to boost the number of Chinese visitors to Korea and increase demand for casinos. An industry insider commented, "With the increase in mass customers and the overall casino market on an upward trend, betting by VIPs-who play a major role-could also rise. We expect the effects of visa-free entry to become more pronounced starting in the fourth quarter."
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