South Korean foreigner-only casino operator Paradise Co roared back to profit in 1Q23, backed by significant revenue increases at all four casinos.
Profit for the quarter reached KRW9.45 billion (US$7.2 million), reversing a KRW36.0 billion (US$27.3 million) loss in 1Q22 and a KRW1.62 billion (US$1.2 million) loss in 4Q22. This included a 129% year-on-year and 19.7% sequential increase in casino sales to KRW71.0 billion (US$54 million), with Adjusted EBITDA of KRW42.4 billion (US$32 million) also reversing a KRW1.45 billion (US$1.1 million) loss a year earlier.
Paradise also reported casino sales of KRW63.4 billion (US$48 million) at its Paradise City integrated resort in Incheon, up 179% year-on-year, where net profit of KRW2.66 billion (US$2.0 million) reversed a 1Q22 loss of KRW17.6 billion (US$13.4 million).
Paradise City casino sales are separated from its other results due to it being a joint venture partnership with Japan’s Sega Sammy Holdings. Paradise holds a controlling 55% stake in the property.
At its casino sites in Seoul, Busan and Jeju, Paradise, Paradise cited improved results due to strong sales growth in Japan and the mass market. The company said it began welcoming back Japanese VIPs in July 2022 while visa-free entry from Japan resumed in October, again providing additional uptick. Paradise expects further improvement as flights to Japan continue to increase, also aided by the reopening of the tourism from China.
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