Kangwon Land annual revenue could reach US$1.01bn, analysts say

NH Investment & Securities predict the South Korean casino could post revenue of KRW1.33tn (US$1.01bn) by the end of the year.

South Korea.- Kangwon Land, the only casino in South Korea that allows locals to enter, could end the year with significant revenue growth. According to a study by the brokerage NH Investment & Securities Co Ltd, the casino operator could report revenue of KRW1.33tn (US$1.01bn) by the end of the year if Covid-19 measures are relaxed in the country.

According to analyst Hazell Lee, the figure would be a 69.1 per cent improvement from 2021. The casino operator has reported a net profit of KRW37.55bn (US$28.8m) for the second quarter of the year, up 79.6 per cent year-on-year. Gross gaming revenue (GGR) came in at KRW308.80bn, up 51.5 per cent when compared to Q2 last year.

In May, the casino operator returned to its normal capacity limit after months of restrictions due to the Covid-19 pandemic. From April 18, the company was also allowed to extend its operating hours to its pre-pandemic opening times of 10am to 6am. 

Lee said: “We anticipate further meaningful sales growth from the third quarter of 2022 in line with the full-quarter reflection of business normalisation effects. For reference, the average daily number of visitors since July has risen to 85 per cent of the pre-pandemic level (8,000 in 2019). 

“In addition, the daily average drop amount is already at the pre-Covid-19 level thanks to increased drop amount per person.”

However, according to the Korea Centers for Disease Control and Prevention, the country recorded 180,803 new Covid-19 infections on Wednesday, 567 of them from overseas. The number of new cases was a 114.9 per cent increase from the 84,128 recorded in the previous 24-hour period.