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South Korea’s foreigner-only casino operators Paradise Co Ltd and Grand Korea Leisure Co Ltd (GKL) both reported weaker casino sales in March, with results falling on both a monthly and yearly basis. Filings submitted to the Korea Exchange on Thursday showed that the two operators continued to face pressure in their casino business, even as table drop figures moved differently for each company.
Paradise Co Records Steeper Drop
Paradise Co reported casino sales of about KRW 49.50 billion, or $32.7 million, for March. This was 44.0% lower than the KRW 88.47 billion reported in February. When compared to the same period a year ago, the casino sales for March were 39.6% lower. Table games contributed to most of the casino sales for the month, with almost KRW 44.09 billion in sales for March. This was 47.5% lower than February sales. Additionally, it was 43.4% lower than sales for the same period a year ago.
At the same time, Paradise Co’s March table drop reached KRW587.74 billion. This was 9.7% higher than February sales. It was also about the same as sales for the same period a year ago. The casino operates 3 casino locations directly. These include Walkerhill in Seoul, Paradise Jeju in Jeju Island, and another casino in Busan. It also runs a joint venture with the Japanese company, Sega Sammy Holdings Inc. Its joint venture runs a casino in Paradise City, located in Incheon. Incheon is South Korea’s main flight hub.
Despite the monthly decline, Paradise Co’s performance over the first 3 months of the year remained slightly positive. Its aggregate casino sales for the January-to-March period reached KRW229.67 billion, up 1.8% year-on-year. Aggregate table drop for the period came to KRW1.76 trillion, also up 3.6% from the same period last year.
GKL Sees Softer March Results
Grand Korea Leisure also reported a weaker March. Casino sales amounted to KRW31.98 billion, 16.0% lower compared to KRW38.08 billion recorded in February and 22.8% lower than in February the previous year. Sales of table games during the month stood at KRW28.44 billion, representing an 18.2% reduction from the previous month and 26.0% decline year-on-year.
GKL’s casino drop for March moved in the opposite direction of its sales, rising to KRW339.30 billion. This was higher by 18.8% than February and 13.5% higher than February the previous year. The firm manages 3 separate foreigner-only casinos with Seven Luck brand, 2 situated in Seoul and another in Busan.
The operator is a subsidiary of the Korea Tourism Organization, which is affiliated with South Korea’s Ministry of Culture, Sports and Tourism. Its March performance added to a softer quarter overall, with results moving below last year’s pace in sales even as drop figures held up more strongly.
First Quarter Performance
For the January to March period, GKL reported casino sales of KRW106.65 billion, which was down 1.5% year-on-year. Its aggregate casino drop for the same period reached KRW931.03 billion, up 12.6% from a year earlier.
The latest filings show that both operators entered the second quarter with mixed signals, as sales weakened in March even while certain drop figures showed resilience. Paradise Co finished the quarter with modest growth in sales and drop, while GKL saw a slight decline in sales but a stronger increase in player spending activity over the same period.
Source: GGR Asia
