Kangwon Land posts net profit of US$18.2m for Q2

Kangwon Land has shared its financial results for the second quarter of the year, reporting a net profit of KRW20.9bn (US$18.2m).

South Korea.- The South Korean casino Kangwon Land has reported a net profit of KRW20.9bn (US$18.2m) for the second quarter of the year. However, its cumulative net loss for the first half amounts to over KRW19bn.

For the previous quarter, the company reported a net loss of KRW40.9bn (US$36.6m) and sales of KRW97.4bn.

Kangwon Land has recently reduced its capacity again to 30 per cent of pre-pandemic levels due to an increase in Covid-19 cases in South Korea.

For the first half of the year, the casino operator registers a cumulative net loss of over KRW19bn. Second-quarter sales were KRW203.6bn, up 488 per cent when compared to the second quarter of 2020.

GGR for the quarter KRW203.8bn, up 539.4 per cent year-on-year and up 107.3 per cent from the first quarter. Of that, KRW82.7bn came from mass gaming tables and KRW74.0bn came from slot machines.

Gaming sales were KRW183.9bn, up 550.4 per cent year-on-year and up 115.3 per cent from the previous quarter. Non-gaming sales were up 210.4 per cent when compared to the previous year and up 64.4 per cent quarter-on-quarter.

The number of visitors registered during the period was 199,394, an increase from the 2,364 visitors registered a year ago and the 87,200 visitors during the first quarter of the year.

According to Shinhan Investment Corp, the South Korean casino could see a gradual recovery during 2021 and 2022 as social distancing rules are eased following a rise in the vaccination rate in South Korea.

According to Business Korea, analysts think the gaming revenue cap could rise by 5 per cent and 7 per cent between 2020 and 2022. 

Kangwon Land has been allowed to increase betting limits on 20 gaming tables, a measure that should provide the casino operator with additional growth in sales from the second quarter of the year.