South Korea's Casinos Register Recovery in Latest Financial Statistics
Following the COVID-19-induced slump in the region, foreigner-exclusive casinos in South Korea witness a surge in profits. Grand Korea Leisure (GKL) mentioned that its February earnings reached approximately KRW36.77 billion (US$28.3 million), according to its latest financial report released last Friday. This represents a 14.6% increase compared to the previous month and a whopping 437.2% riseyear-on-year.
Table games experienced the most significant growth, accounting for nearly a 525% increase year-over-year, generating KRW34.32 billion (US$26.44 million). Gaming machines, with KRW2.46 billion (US$1.89 million), registered an 81.7% increase compared to the previous year but showed a 18.6% drop from January's total.
The combined table drop across GKL's three Seven Luck casinos in South Korea – two in Seoul and one in Busan – amounted to KRW209.57 billion (US$161.45 million). This represents a year-on-year increase of 153.3% but a month-on-month decline of 23.1%.
For most of 2022, the trend remained upwards. GKL declared KRW265.17 billion (US$204.28 million) in total revenue last year, marking a 196% increase YoY, despite incurring a net loss of KRW22.74 billion (US$17.52 million). This was substantially better than the KRW113.2 billion (US$87.21 million) loss from 2021. In Q4 2022, GKL showed significant progress, boosting its third-quarter revenue by 24.6% and its fourth-quarter revenue by 330% compared to the previous year.
Paradise Co. and its four casinos in South Korea experienced a decline in revenue in February compared to the preceding month. However, it still outperformed the revenue from the same month last year. In February, the casino revenue was KRW44.7 billion (US$34.5 million), a 7.2% drop compared to January. This figure was, however, a striking 163% increase compared to February 2021. A decrease in table game and gaming machine activity led to this slide.
February's table drop was the primary cause of the decline, recording a month-over-month drop of 23.9%, closing at KRW362.4 billion (US$280 million). Table games saw a 5.1% drop from January, finishing at KRW42.3 billion (US$32.6 million), and gaming tables reported a 33.2% drop to KRW2.36 billion (US$1.8 million).
Despite the recent decline, the start of the year has been successful overall. The combined revenue for the first two months totaled KRW92.8 billion (US$71.6 million), representing a 164% increase from January to February 2022.
Shin Hwa World Ltd., previously known as Landing International Development, continues to face challenges despite moving in a positive direction. The company, which operates the Jeju Shinhwa World resort in Jeju, reported a loss for 2022, although it was smaller compared to the loss from 2021. In a recent update, the Hong Kong-based company announced it expects to report a consolidated net loss for the year, with an estimated improvement of around 65-85% over 2021.
In 2021, it posted a net loss of HKD1.06 billion (US$134.9 million). This was nearly half the HKD2.12 billion (US$270.08 million) loss from 2021. Shin Hwa plans to release the final 2022 results sometime this month.
Read also:
- Leverkusen claims victory in the cup, securing a double triumph.
- Alonso achieves a double victory after consuming a German brew.
- Does the SVolt factory in Saarland face stability issues?
- Furor surrounding Sylt scandal footage