Paradise Co, a prominent foreigner-only casino operator in South Korea, has reported robust financial results for the first quarter of 2024. With a significant year-on-year increase in sales, driven by improvements in various segments such as the mass market and Japanese VIPs, the company’s performance reflects promising growth trends and market dynamics.
Sales Performance:
In the first quarter of 2024, Paradise Co witnessed a remarkable 38.2% year-on-year increase in sales, reaching KRW264.8 billion (US$193 million). This growth was also notable sequentially, with a 9.5% increase from the previous quarter. The casino segment played a pivotal role in driving overall sales, experiencing a substantial surge of 44.1% to KRW102.3 billion (US$74.6 million). Additionally, hotel sales grew by 3.7% to KRW26.3 billion (US$19.2 million), while integrated resort sales surged by 45.0% to KRW132.3 billion (US$96.5 million).
Financial Performance:
Paradise Co’s financial performance in 1Q24 demonstrated significant improvements, with EBITDA reaching KRW68.1 billion (US$49.7 million), marking a notable 62.4% year-on-year increase. Net profit also soared, reaching KRW37.0 billion (US$27.0 million), reflecting an impressive growth rate of 291%.
Performance of Joint Venture Projects:
The company’s joint venture project, Paradise City in Incheon, witnessed a substantial sales increase of 45.0% to KRW132.2 billion (US$96.4 million) during the first quarter of 2024. This growth was primarily fueled by a remarkable 61.8% rise in casino sales, reaching KRW102.6 billion (US$74.8 million). Notably, compared to 1Q19, Paradise Co reported a significant increase in drop rate from Japanese VIPs by 70% and mass market play by 89%. Moreover, there was a noticeable uptick in hotel occupancy and room rates attributed to both inbound visitors and domestic demand.
Subsidiary Performance:
At subsidiary Paradise, sales surged by 42.9% year-on-year to KRW106.0 billion (US$77.3 million), with casino sales experiencing a robust growth of 44.1% to KRW102.3 billion (US$74.6 million). The company highlighted the contribution of Japanese VIPs and mass gaming to the sales performance, surpassing levels recorded in 2019.
Market Dynamics and Visitor Trends:
The first quarter of 2024 witnessed Paradise Co achieving its highest-ever casino drop, indicating a strong influx of players. The rise in Japanese VIPs was complemented by improving visitation from mainland China, indicating a positive trend in international tourism. Additionally, the company noted increased hotel occupancy and room rates, driven by a combination of factors including inbound tourism and domestic interest.
Paradise Co’s robust performance in the first quarter of 2024 underscores its resilience and ability to capitalize on evolving market dynamics. With significant growth in sales and profitability across various segments, coupled with positive trends in visitor demographics and market demand, the company is well-positioned for continued success in the South Korean gaming industry.