Casinos in South Korea: Paradise Co posts net income of US$14.20m for Q3

Paradise Co’s income was down 55 per cent in year-on-year terms.

South Korea.- Paradise Co has reported that net income attributable to shareholders was KRW19.66bn (US$14.20m) in the third quarter of the year. The figure was down 55 per cent year-on-year but up 32.71 per cent when compared to the previous quarter.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) were KRW55.73bn (US$28.35m) down 27.7 per cent year-on-year but up 7.4 per cent sequentially. Overall sales reached KRW268.25bn (US$136.34m), down 6.1 per cent year-on-year, and 1.8 per cent in quarter-on-quarter terms.

Paradise Co recorded casino sales of KRW84.38bn (US$42.89m), down 27.1 per cent in year-on-year terms and down 24.6 per cent sequentially. The decline was mainly attributed to a low hold rate. The soft drop reached KRW1.77tn (US$899.21bn).

Paradise Co operates four venues in its casino division: Walkerhill in Seoul, Jeju Grand on Jeju Island, Busan Casino in the southern port city of Busan, and Paradise City, near the main international airport serving Seoul. Walkerhill’s casino revenue totalled KRW65.8bn (US$33.4m), down 28 per cent sequentially and 33.8 per cent year-on-year.

Meanwhile, Paradise City EBITDA reached KRW37.50bn (US$19m), up 4.9 per cent year-on-year and 49.5 per cent compared to the second quarter of the year. Revenue was KRW146.55bn (US$74.58m), up 10.5 per cent compared to last year and up 11.5 per cent sequentially. Casino revene amounted to KRW110.29bn (US$56.15m), up 12.8 per cent in year-on-year terms and 7.6 per cent sequentially.

In October, revenue was flat year on year and down 1.3 per cent month-on-month at KRW60.29bn (US$43.9m). Table-game sales were down 1.2 per cent year-on-year and 1.6 per cent sequentially at KRW55.84bn (US$40.7m). Machine game sales were KRW4.45bn (US$3.24m), up 3.4 per cent month-on-month and 16.9 per cent year-on-year.

For the first ten months of 2024, aggregate casino revenue reached KRW674.28bn (US$491.1m), up 7.9 per cent year-on-year. Revenue from table games was up 7.5 per cent year-on-year, to KRW630.42bn (US$459m), and machine-game sales rose by 13.9 per cent to KRW43.86bn (US$31.9m).

New high-roller space

The new space for high-rollers at Paradise Casino Walkerhill in Seoul is reserved for the top 1 per cent of patrons. The company describes it as having an elegant Art Deco design with seven private rooms, a lounge and a bar, offering “personalised high-end services and an elevated gaming experience.”

The casino’s first expansion in nine years increases its size by 17 per cent, from 3,934.60 to 4,587.26 square metres. There are now 112 table games and 213 machine games. The casino operator said it expects sales in the new VIP venue to reach KRW22bn (US$16.6m) in 2025 and KRW32bn (US$24.18m) in 2026. The company plans to open a new international lounge at Gimpo Airport this month