Casino operator Paradise Cuts Q1 Loss
Paradise Inc., the local operator of foreign-only casinos, saw its shareholders’ net loss decline in the first quarter compared to the fourth quarter.
It lost 18.2 billion won ($16.2 million) in the first quarter, compared to a net loss of 67.5 billion won in the last three months of 2020. The company recorded a net loss of 2.5 billion won in the first quarter of last year.
Paradise suffered quarterly disruptions to its business due to factors such as capacity restrictions and other measures related to efforts to contain the COVID-19 pandemic in common with casino companies in the Asia-Pacific region.
The group’s revenue fell 7.1% quarter-on-quarter to 96.6 billion won, down 47.7% year-on-year, the report showed.
However, casino sales in the first quarter fell by 31.1% sequentially, just short of W37.9 billion. These sales were down 51.6% year-over-year.
The Incheon Paradise City Casino Resort near Seoul’s main airport recorded 30.2 billion won in casino sales during the period, down 60.2% from the same period last year, but increased sequentially by 51.4% year-on-year. Paradise shares economic interests with Japanese group Segasammi Holdings through Paradise Segasammi Inc.
Groupwide Paradise’s earnings before interest, taxation, depreciation and amortization (EBITDA) for the first quarter of 2021 were 12.9 billion won, up 76.3% from 7.3 billion won in the last quarter of 2020. Compared to the same period last year, EBITDA was down 59.0%.
Paradise Segasami’s EBITDA is back in positive territory compared to the fourth quarter, when it posted negative EBITDA of W796 million. Paradise said its first-quarter EBITDA was “driven by cost cuts.”
Paradise Co said in its earnings release that its non-gaming facilities in Paradise City – Hotel “Art Paradiso,” Club “Chroma,” Spa “Cimer” and theme park “Wonderbox” – have been “temporarily closed” since July 1, 2020.
However, the filing says Paradise City is “ready to reopen theme parks and spas” as a result of the “coming summer session.” 바카라사이트
Other gaming establishments in Paradise are Walkerhill in Seoul, Jeju Grand on Jeju Island, and Busan Casino in the southern port city of Busan.