One thing most casino operators in South Korea can agree on is that they are glad the third quarter of this year is coming to an end. This period so far has not been favorable to most of them especially in the aspect of their earnings.
According to the filings these operators made with the Hong Kong Stock Exchange, their performance so far has been nothing short of disappointing.
As reported by Calvin Ayre, the only South Korean casino to report positive results for the quarter is Kangwon Land. The company enjoyed a significant increase in sales and in its overall revenue too.
The net profit reported by KRW was estimated to be in the region of KRW 128.6 billion (€100,751,370, or $111,000,000), increasing by a surprising 37.9 percent.
The operating profit for the third quarter was KRW139.2 billion ($120,000,000 or €108,915,600), an increase of 12.3 percent. When compared to the same time last year, it’s a whopping 37.9% increase. Total revenue increased by 9.9% to a total of KRW405.5 billion (€317,563,750 or $350,000,000).
As good as operations were for Kangwon Land, others cannot say the same, especially their two major competitors who happened to be owned by foreigners.
As reported by Grand Korea Leisure, they experienced a notable fall in profits in spite of increased sales during Q3 of 2019. Profits fell by 4.1% to KRW25.29 billion (€19,875,564 or $21.9 million) for the 3 months.
As bad as things seem to be for this company, they still had a reason to be positive. Overall sales rose slightly by 2.3 percent in the third quarter of last year.
The month of September seems to be the month where most damages occurred. In September, the company experienced a fall in revenue of 8.9 percent. This fall was caused primarily by a fall in the sales of machine games.
In addition, Paradise Entertainment also experienced a significant fall in profit. The total gaming revenue for the company fell by 9.5% in Q3 of 2019 when compared to their performance this time last year.
This fall includes a loss in gaming table earnings of more than 26.5 percent at their Kam Pek Paradise Casino. The loss was estimated to be in the region of HK$443.5 million (€51,352,614 or $56.6 million.)
Paradise Entertainment also reported a decrease in the net win for each table every day from HK$56,800 to HK$41,800 ($7,260 and $5,340, respectively). This decrease also played a substantial role in the organization’s fall in revenue.
The gambling industry looks to have gained a lot of ground in South Korea. This is the reason a lot of analysts in the industry are shocked by the dismal results posted by the company.
The number of tourists has also reduced, but it seems to be that the local store owners are more efficient at attracting customers to visit their facilities.
Neither Grand Korea Leisure nor Paradise gave any explanation as regards changes or promotions they plan to make to stem the tide of mediocre results they’re currently battling with.