Challenging first quarter for Paradise Company Limited

Challenging first quarter for Paradise Company Limited

South Korean casino operator Paradise Company Limited has reportedly released its financial results for the first quarter of 2018 showing that it experienced a massive 61.6% year-on-year decline in net income for the period to approximately US$2.9 million.

According to a report from GGRAsia, the Seoul-listed firm also revealed an over 37.5% decrease year-on-year in its first-quarter operating profit to about US$4.5 million despite reporting a 26% increase in total revenues to in excess of US$168.2 million as casino takings rose by some 19.9% to hit around US$139.9 million.

The largest casino operator in South Korea, Paradise Company Limited reportedly runs gambling facilities in the cities of Busan, Jeju and Seoul while last year saw it inaugurate its US$1.7 billion Paradise City integrated casino resort on a 10.6-acre plot of land adjacent to Incheon International Airport. The firm purportedly gave no explanation for the first-quarter year-on-year declines but did release a later statement in which it forecast that total sales for the year would reach at least $805.6 million with earnings before interest, tax, depreciation and amortization of nearly US$89 million.

GGRAsia reported that a subsequent third statement from Paradise Company Limited declared that casino sales in April had fallen by around 0.7% year-on-year to almost US$36 million although the figure for the initial four months of 2018 had risen by 14.5% to stand at US$175.2 million. Regarding last month’s casino sales, the operator purportedly stated that table games had accounted for nearly 92.9% of this amount at US$33.4 million, which represented a decline of 0.1%, while gaming machines had contributed 8% less at approximately US$2.5 million.

Author: Darlene Miller