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Paradise Co extends losses in Q2


South Korea’s largest casino operator Paradise Co. Ltd suffered yet another multi-million loss in the second quarter of the year despite the opening of its newest casino resort Paradise City.

In a disclosure to the Korean Composite Stock Price Index, the casino operator incurred an operating loss of KRW27.3 billion (US$24.24 million) in April to July 2017 period against KRW32.8 billion ($29.31 million) a year earlier.

Paradise Co extends losses in Q2Total sales revenue of Paradise Co. plummeted 26 percent to KRW139.9 billion ($124.3 million) in the second quarter, with casino sales tumbling to 31.1 percent to KRW114.9 billion ($102.05 million).

The company attributed the dismal performance of their gaming segments to weak VIP luck, as well as a decline in the number of Chinese VIP customers following a diplomatic row between South Korea and China.

Since March, South Korea’s casinos have suffered from the ongoing diplomatic spat between South Korea and China – Jeju’s traditional main supplier of international tourists – over the deployment of a US anti-missile missile system. Bejing, which traditionally sides with North Korea in international disputes, subsequently put the kibosh on group tours – by air or sea – to Jeju.

Data from the Korea Tourism Organization showed that the number of Chinese visitors to South Korea – an important source of customers for foreigner-only South Korean casinos – fell 41 percent year-on-year in the first six months of 2017.

This explains why Paradise Co posted a table drop of KRW 1.12 trillion ($994 million) for the second quarter, compared to KRW1.20 trillion ($1.06 billion) in the prior-year period. Chinese VIP patrons to the firm’s casinos accounted for 34.8 percent of the total table drop in the April to June period, according to Tuesday’s statement.

In the second quarter of 2016, Chinese VIPs had accounted for 50.6 percent of the total table drop in that period.

The revenue results were collated from Paradise’s four foreigner-only casinos: Walkerhill in Seoul; Jeju Grand on Jeju Island; Busan Casino in the southern port city of Busan; and Paradise City, in Incheon, near the main international airport serving the country’s capital Seoul.

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Virus-absolutely free Paradise casinos rebound bid to conclude Kangwon Land community monopoly


August 5, 2016

south-korea-virus-free-casinos-thumb

south-korea-virus-free-casinosSouth Korean on line casino operator Paradise Co Ltd created a breathtaking return to sort in Q2, many thanks to the absence of a killer disease stalking the state.

In Q2 2015, Paradise saw earnings at its five foreigners-only casinos drop by nearly 50 percent following an outbreak of Middle East Respiratory Syndrome killed dozens of men and women when other Asian nations – China, in unique – warned their citizens to steer obvious of the state.

With that risk now driving them, Paradise saw profits rise nearly one-3rd to KRW 189b (US $170m) in the three months ending June 30. Operating revenue appreciated an even larger sized bounce, climbing a whopping 147.six% to KRW 32.7b, when net revenue rose 113.six% to KRW 27b.

Meanwhile, Kangwon Land, the only one of South Korea’s seventeen casinos to which community inhabitants are permitted entry, reported a additional modest profits bump (KRW 411.8b, +5.nine%) but net income rose a respectable 27.1% to KRW 123.7b.

Daiwa Securities analysts stated Kangwon Land’s gains have been no many thanks to VIPs, as significant-roller profits fell 2.7% calendar year-on-calendar year. By contrast, mass current market tables and slots have been up 5.5% and eleven.six% respectively. VIP gaming accounted for 16% of the total pie, when mass tables and slots notched 45% and 36%, respectively, and non-gaming profits contributed the remaining three%.

KANGWON LAND RIVAL PROPOSED
Kangwon Land’s monopoly on community gamblers does not expire until 2025 but a team of opposition politicians would like to speed up that timetable. Members of the People’s Get together submitted legislation this week that would authorize a locals on line casino in the Saemangeum tidal flat spot in North Jeolla Province, located on the country’s southwest coastline.

The Korea Periods quoted People’s Get together Rep. Kim Kwan-Youthful expressing North Jeolla Province lawmakers had agreed to support the new on line casino prepare, which would need amending the legislation that stipulates only a foreigners-only on line casino can be developed in the area.

To sway those people who worry about locals struggling damage from gambling, Kim has prompt charging an admission cost of KRW 50k to 100k, significantly larger than the KRW 9k cost billed by Kangwon Land. Kim also prompt capping month to month visits at 10 for every resident.

A previous prepare that would have permitted locals to gamble in shipboard casinos docking in South Korean ports fulfilled with intense resistance from Kangwon Land and the inhabitants of Gangwon Province. Anticipating similar resistance, Kim has prompt (a) letting Kangwon Land’s operators commit in the Saemangeum on line casino project, or (b) diverting a slice of the earnings to Gangwon Province.

Even with Kim’s initiatives, the expectation is that the prepare will not fly, as previous initiatives to persuade South Korea to relax its no-locals plan have unsuccessful to sway legislators, and the People’s Get together lacks the clout to rally adequate votes on these kinds of a potentially contentious issue.



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