South Korean integrated resort Paradise City, the joint venture project between Korea’s Paradise Co and Japan’s Sega Sammy, returned to profit in 4Q22, aided by a 528% year-on-year increase in casino sales to KRW71.9 billion (US$55.8 billion).
The strong performance of Paradise City formed part of Paradise Co’s Q4 financial results, published Wednesday, in which it revealed a group-wide loss for controlling interests of KRW3.91 billion (US$3.0 million) – down from a KRW39.4 billion (US$30.6 million) profit in the September quarter but narrowed from its KRW47.0 billion (US$36.5 million) loss in 4Q21. Group-wide sales in 4Q22 grew by 73.3% year-on-year and 2.0% quarter-on-quarter to KRW193.2 billion (US$150 million).
While Paradise City has been a slow burn, the reopening of Korea’s international borders has brought it back to life with property sales growing by 186% to KRW100.8 billion (US$78.3 million). As a result, the IR produced a net profit of KRW3.67 billion (US$2.8 million) for the quarter, reversing a KRW31.3 billion (US$24.3 million) loss in 4Q21, with EBITDA of KRW27.8 billion (US$21.6 million) also reversing a 4Q21 EBITDA loss of KRW4.06 billion (US$3.2 million).
Paradise Co said it has seen an improving profit margin on the back of growing Japanese VIP customers to Paradise City, while hotel sales in 2022 exceeded pre-COVID levels by 38.6%.
For FY22, Paradise co reported group-wide profit attributable to controlling interests of KRW25.5 billion (US$19.8 million), reversing a KRW52.5 billion (US$40.8 million) loss in 2021. That came on the back of a 41.8% year-on-year increase in sales to KRW587.6 billion (US$456 million), including a 17.0% increase in casino sales to KRW190.6 billion (US$148 million).
Aside from Paradise City, Paradise Co also operates Paradise Walkerhill in Seoul, Jeju Grand and Busan Casino Paradise.