Kangwon second quarter results miss forecasts

Kangwon Land Inc, operator of South Korea’s only locals-allowed casino resort, has posted net income of KRW 123.7 billion (US$110.1 million) for 16Q2, up by 27.1 percent from the same period in 2015.

In a filing to the Korea Exchange, the operator reported that revenue from sales increased 5.9 percent year-on-year to KRW 411.8 billion in the second quarter of 2016.

The results were lower than analyst expectations, with Daiwa Securities Group’s analyst Thomas Kwon attributing the results “on a fall in VIP gamer traffic and hold ratio”.

For the six months to June 30, the casino operator reported accumulated net income of KRW 266.5 billion, up 16 percent from the prior-year period.

Earlier in the year, the Daiwa analysts noted the resort had seen strong business growth in the first two months of 2016.

At the time, Kwon said Kangwon Land is “likely to show strong business growth in the first quarter of 2016,” forecasting first quarter revenue to rise by 9.2 percent to KRW 464 billion (US$398.6 million), and profit to rise 8.3 percent to KRW 183 billion.