Paradise Co could benefit from return of Japanese tourists, analysts say
Paradise Co could benefit from the arrival of Japanese tourists once South Korea reopens its borders.
South Korea.- Analysts at Seúl Shinhan Investment Corp have reported that South Korean casino operator Paradise Co could see the most benefit from the arrival of Japanese tourists in the following months.
Shinhan Investment says South Korea’s expectations for a return of regular passenger flights to and from Japan in June are increasing. The brokerage noted that the number of annual flights between the two countries fell from around 120,000 in 2019 to less than 10,000 in 2021 due to travel restrictions related to the Covid-19 pandemic.
Paradise Co’s casino, which can only be accessed by foreign customers, reported a fall in revenue of 7.6 per cent in April when compared to the previous month, down from KRW18.64bn to KRW17.22bn (US$13.5m).
According to GGR Asia, Shinhan Investment’s Ms Ji said: “Compared with other domestic South Korean casinos, Paradise had relied heavily on inbound travel from Japan before the Covid-19 pandemic, with Japanese visitors accounting for roughly 35 per cent of total VIP drop and more than 40 per cent of total table drop including mass customers in 2019.”
Casino revenue in South Korea was KRW1.18tn (US$975.39m) in 2021, compared to KRW1.04tn in 2020. Revenue from the 16 foreign-only casinos fell nearly 31.9 per cent year-on-year to KRW407.13bn. Compared with KRW2.93tn in 2019, the last year of transactions before the Covid-19 pandemic, total casino revenue fell by 59.7 per cent.
Paradise Co sells office in Gangnam to bolster liquidity
As previously reported by Focus Gaming News, it’s emerged that Paradise Co has sold an office building in the Gangnam district of Seoul for KRW100.5bn (US$79m). According to Korea Biz, the casino operator sold the office to secure liquidity and improve its financial position due to the impact of the Covid-19 pandemic.
Due to the economic crisis, Paradise Co Ltd saw its workforce decline 5.3 per cent in the last two years. In 2021, Paradise Co casino revenue was down 25.7 per cent when compared to the previous year.
