South Korea’s Paradise Co sees revenue growth in Q1
Revenue was up 7 per cent in year-on-year terms.
South Korea.- Paradise Co has shared its financial results for the first quarter of the year. Revenue reached KRW283.3bn (US$199m), up 7 per cent year-on-year. Operating profit increased 18.3 per cent to KRW57.3bn (US$40m).
Net income was up 20 per cent at KRW31.13bn (US$22.1m). Earnings before interest, taxation, depreciation, and amortisation (EBITDA) was KRW76.05bn (US$53.6m), a 11.7 per cent increase.
Paradise Co operates three gaming venues directly: Walkerhill in Seoul, Paradise Jeju on Jeju island, and a property in the port city of Busan. The company reported an increase in aggregate casino sales of 13 per cent year-on-year to KRW115.55bn (US$81.5m) thanks to a higher hold rate, up 2 percentage points in year-on-year terms.
Sales from integrated resort operations at Paradise City in Incheon rose 5.2 per cent to KRW139.18bn (US$98.1m), including casino, hotel and theme park sales. Casino sales at Paradise City reached KRW110.1bn (US$77.6m), up 7.3 per cent year-on-year, and EBITDA was KRW42.45bn (US$30m), an increase of 4 per cent. Net profit was up 13.6 per cent to KRW25.5bn (US$18m).
In April, the casino operator announced a target to increase its revenue by more than 10 per cent annually and its operating profit margin to over 20 per cent by 2027 as part of its “Value Up” plan to increase shareholder value. Paradise Co plans to gradually increase its dividend payout ratio based.
Paradise Co also plans to begin construction on a new hotel in Seoul with a target opening date in 2028. The 18-floor hotel will have approximately 200 suites and five basement levels offering services for foreign VIPs as part of a broader strategy to attract more international high-rollers. The cost of the development is estimated between KRW500 (US$360m) and KRW550 (US$400m).
