casino businesses-Q1 earnings

▲ A photo of a resort in Kangwon Land in Jeongseon, about 160 kilometers northeast of Seoul, provided by the company (PHOTO NOT FOR SALE) (Yonhap)

casino businesses-Q1 earnings

Major casino businesses swing to profit in Q1 on increased travelers

SEOUL, May 11 (Yonhap) -- Three major South Korean casino operators have said they swung to profit in the first quarter from a year earlier due to a hike in tourism amid eased COVID-19 restrictions.

Net profit of Kangwon Land Inc., the state-run casino operator, came to 101.5 billion won (US$76.9 million) in the January-March period, compared with a net loss of 5.8 billion won a year earlier, according to its regulatory filing on Wednesday.

Its sales rose 58 percent on-year to 358.1 billion won and operating profit surged to 69.7 billion won from 10.5 billion won.

Kangwon Land said the number of casino visitors rose 75 percent on-year to 625,000, including 5,500 foreigners.

The Kangwon Land casino in Jeongseon, about 160 kilometers northeast of Seoul, is the country's only casino both open to locals and foreigners.

Paradise Co., the operator of foreigner-only casinos in Seoul, Incheon, Busan and Jeju Island, also shifted to a net profit of 9.5 billion won in the first quarter from a net loss of 36 billion won during the same period of last year, according to its regulatory filing on Wednesday.

Paradise posted quarterly sales of 191.5 billion won, up 92 percent on-year, and operating profit of 19 billion won, a turnaround from an operating loss of 25.5 billion won a year ago.

"Sales of casinos gradually recovered after the resumption of visa-free entry for Japanese travelers," an official at Paradise said, noting it looks forward to recovery of inbound travelers from China in the second half of this year.

Grand Korea Leisure Co., the operator of foreigner-only casino club Seven Luck in Seoul's Gangnam district, also said Wednesday it swung to a net profit of 21.6 billion won in the first quarter from a net loss of 10.8 billion won during the same period of last year.

The company saw its sales rise 132.9 percent on-year to 109.2 billion won and posted an operating profit of 27.2 billion won, swinging from an operating loss of 13.2 billion won on-year.

GKL said 145,000 visited its casino from January to March, up 113 percent from the same period of last year.

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