Paradise Co., a prominent foreigner-only casino operator in South Korea, demonstrated remarkable financial growth in 2023, despite facing challenges in the fourth quarter.
Financial Highlights:
In 2023, Paradise Co. witnessed a staggering 441% increase in net profit, reaching KRW84.7 billion (US$63.6 million), alongside a substantial 118% rise in EBITDA, amounting to KRW228.8 billion (US$171.9 million). This growth was primarily attributed to the robust performance of its casino operations.
Sales Performance:
Casino sales surged by 118% to KRW415.0 billion (US$311.8 million) in 2023, while integrated resort sales also saw a notable increase of 65.8%, reaching KRW448.7 billion (US$337.1 million). However, in the fourth quarter, the company reported a loss of KRW5.70 billion (US$4.3 million), compared to a profit of KRW43.7 billion (US$32.8 million) in the same period of the previous year, due to higher costs.
Operational Insights:
Despite the fourth-quarter setback, Paradise Co. achieved significant milestones in 2023. Operating profit reached an all-time high of KRW4.69 billion (US$3.5 million), driven by record-breaking revenue from both mass gaming and Japanese VIPs, as well as hotel operations, which generated KRW100.4 billion (US$75.4 million).
Segment Performance:
At Paradise City in Incheon, the company’s joint venture with Sega Sammy Holdings, casino sales grew by 17.6% year-on-year but declined by 3.6% sequentially in the fourth quarter. However, the property experienced a decrease in EBITDA and incurred a net loss for the quarter. Despite this, operating profit for 2023 was the highest ever recorded.
Paradise Co.’s 2023 financial report reflects a mixed performance, with exceptional overall growth overshadowed by challenges in the fourth quarter. The company’s strategic focus on casino operations, particularly in attracting mass gaming and Japanese VIPs, has been a key driver of its success. Moving forward, addressing cost management and sustaining operational excellence will be crucial for maintaining growth momentum.