Paradise posts solid second-quarter earnings

Korea casino operator Paradise Group posted consolidated operating profit of KRW 32.8 billion (US$29.4 million) for the second quarter of 2016, up 147.6 percent from a year earlier.

The upswing was largely due to low tourist numbers in 2015 because of the outbreak of Middle East respiratory syndrome as well as China’s crackdown on VIPs.

The firm’s revenue rose 32.2 percent to KRW 189 billion, while net profit surged 113.6 percent to KRW 27 billion.

Kangwon Land Inc, operator of South Korea’s only locals-allowed casino resort, 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 to “a fall in VIP gamer traffic and hold ratio”.