Paradise Co. due for rebound in 16H2: analysts

Korea’s largest foreigners-only casino operator, Paradise Co may show a gradual rebound in the second half of the year, say analysts quoted by The Korea Herald.

Paradise’s recovery will continue at a “modest pace” this year, and its new resort, Paradise City will help the company attract more VIPs from 2017, added analysts.

“The stock prices appear to reflect the firm’s sluggish first quarter earnings. So we forecast a rise in stock price following an increase in earnings between the second and the fourth quarter,” said Jeong Yoo-seok, a Kyobo Securities analyst.

According to Jeong, Paradise is projected to report KRW 157 billion (US$138 million) in revenue for 16Q1, up 3.8 percent year on year, with a drop in operating profit to KRW 19 billion, down 15.3 percent.

Last week, Paradise Co said casino sales fell 7.7 percent year-on-year in the first quarter of 2016.

Casino sales totalled KRW 137.2 billion (US$118.9 million) for the first three months ending March 31, compared to KRW 148.7 billion in the corresponding period in 2015.

Table game sales fell 7.3 percent year on year, to KRW 128.9 billion, whilst gaming machines sales declined 14.4 percent to KRW 8.3 billion.