South Korea’s prominent foreigner-only casino operator, Paradise Co, has demonstrated robust performance in the initial months of 2024, continuing its positive trajectory from the previous year. In February 2024, the company witnessed a significant surge in casino revenues, marking an 83.1% increase year-on-year and a notable 10.5% rise sequentially, amounting to KRW81.3 billion (US$61.0 million).
Factors Contributing to Revenue Growth:
The exceptional performance in February can be attributed to various factors. Despite experiencing relative luck unfavorability, with table drop remaining relatively flat sequentially, the casino managed to leverage its operations effectively. The table drop, amounting to KRW565.4 billion (US$424 million), demonstrated stability compared to the previous month while showcasing a substantial increase of 56.0% compared to February 2023.
Revenue Breakdown:
Breaking down the revenue figures, table games continued to be the primary revenue driver for Paradise Co, generating KRW76.8 billion (US$57.6 million) in February, representing an 11.8% sequential increase. Conversely, revenue from slot machines experienced a slight decline of 7.2%, amounting to KRW4.52 billion (US$3.4 million).
Performance Overview for the Year:
The impressive performance isn’t limited to February alone. When considering the combined data for the first two months of 2024, Paradise Co has already achieved a remarkable 67.4% year-on-year increase in casino revenues, reaching KRW154.8 billion (US$116.1 million). This surge is complemented by a notable 35.2% rise in table drop, totaling KRW1.13 trillion (US$848 million) during the same period.
Company Profile:
Paradise Co, a key player in South Korea’s casino industry, manages four prominent casinos across the country. These include the integrated resort Paradise City in Incheon, a strategic partnership with Japan’s Sega Sammy. Additionally, the company operates casinos in Seoul, Busan, and Jeju.
Financial Outlook:
The company’s strong performance in recent months is indicative of its potential for sustained growth and profitability. Notably, Paradise Co reported a net profit of KRW84.7 billion (US$63.6 million) for the entirety of 2023, underscoring its position as a leading player in the regional casino market.
As Paradise Co continues to capitalize on favorable market conditions and strategic partnerships, its consistent growth trajectory underscores its resilience and adaptability in the dynamic casino industry landscape. With robust financial performance and a diversified portfolio of operations, the company remains poised for further expansion and success in the foreseeable future.