Paradise Co’s credit rating has been downgraded due to a slow recovery amid the Covid-19 pandemic.
South Korea.- The casino operator Paradise Co has had its credit rating downgraded because of the Covid-19 pandemic and slow performance during the first half of the year.
The company which operates casino venues in Seoul, Busan, Jeju and Incheon posted KRW181.3bn in sales and an operating loss of KRW39.6bn during the first half. Paradise Co also posted a net loss of KRW31.88bn for the second quarter, while net income stood at KRW18.91 bn (US$16.4m).
Casino sales fell 14 per cent year-on-year to KRW30.58bn and 19.2 per cent quarter-on-quarter, mainly due to the Covid-19 pandemic. Aggregate sales were down 12.4 per cent quarter-on-quarter to KRW84.65bn but up 13.4 per cent when compared to 2020.
According to analysts, the lack of tourists due to travel restrictions has deeply affected the casino revenues and contributed to the decrease in sales.
For the first eight months of the year, Paradise Co’s revenue was KRW178.95bn, down 25.6 when compared to the same period in 2020 when it reached KRW240.45bn. Between January and August, table revenue was down 26.6 per cent to KRW163.28bn.
In July, Paradise Co reported that revenue was down 56.3 per cent month-on-month from KRW15.89bn to KRW6.95bn (US$6.04m).