Kangwon Land recovery depends on higher vaccination rates

Kangwon Land's cumulative net loss for the first half amounts to over KRW19bn.
Kangwon Land's cumulative net loss for the first half amounts to over KRW19bn.

Analysts predict Kangwon Land could post consolidated sales up 256 per cent year-on-year for the third quarter as long as vaccination rates increase in South Korea.

South Korea.- Analysts at South Korean brokerage NH Investment and Securities Co Ltd predict that the South Korean casino Kangwon Land could post consolidated sales up 256 per cent during the third quarter when compared to the previous year.

The casino operator could reach KRW272.5bn (US$232.8m) in consolidated sales for the three months to September 30 if South Korea shifts “as long as the vaccination rates increases.”

According to analysts, the rise in vaccination rates would lead to an easing in Covid-19 restrictions. Kangwon Land’s capacity is currently limited to 30 per cent due to countermeasures imposed by the government. However, the casino venue registered an average total number of daily visitors similar to pre-pandemic figures. 

In August, JP Morgan Securities predicted Kangwon Land could start to see an improvement in the next quarter provided there isn’t a new uptick of Covid-19 cases.

Analysts said: “Third-quarter mass/slot revenues should be 20 per cent above second quarter’s, while we project more than KRW25bn (US$21.7m) in operating profits in the third quarter of 2021.”

Hazell Lee, an analyst at NH Investment and Securities Co Ltd has suggested consolidated sales in the third quarter remain the same as the same period last year.

The South Korean operator of foreigner-only casinos has registered KRW56.66bn in casino sales for the first eight months of the year, down 64.6 per cent year-on-year.

In this article:
Covid-19 Kangwon Land land-based casino