Korean hotel casinos’ Q3 earnings jump on return of foreign visitors

Kangwon Land Casino [Provided by Maekyung Media Group]

South Korean hotels with casino operations are enjoying a surge in earnings for the third quarter amid return of foreign visitors as their revenue entirely relies on them.

State-owned casino resort operator Kangwon Land Inc. announced Thursday its consolidated operating profit reached 118.7 billion won ($88.4 million) for the quarter ended September, gaining 69.7 percent from a quarter ago and 389.1 percent from a year earlier.

Net profit soared 98.9 percent on quarter and 265.9 percent on year to 74.7 billion won, while revenue added 27.6 percent from three months ago and 62.1 percent from the previous year to 397.6 billion won.

Revenue from the casino business jumped 61.3 percent on year to 343.5 billion won, driving the broad earnings growth. Visitors to its casino surged 159.6 percent to 659,941, of which 5,125 were foreigners, over the cited period.

Paradise Co. also achieved upbeat performance in the third quarter. It successfully swung to an operating profit of 38.3 billion won from a quarter ago. From a year ago, the profit jumped nearly eight-fold.

Net profit soared 294 percent on quarter and reversed from a loss of 10.58 billion won on year to 42.65 billion won, while revenue climbed 80.1 percent from the previous quarter and 55.6 percent against a year ago to 189.49 billion won.

Revenue from casino business gained 59 percent on year, hotel division 44.3 percent, and resort complex operation 51.6 percent.

“Revenue grew much with the resumption of visa-free pleasure trips by Tokyo and rising demand for luxury hotel stay among Koreans,” said a company official.

GKL Seven Luck Casino [Provided by Maekyung Media Group]

GKL successfully returned to a profit for the first time since the virus pandemic. Its third-quarter operating profit amounted to 4.6 billion won, reversing from a loss of 10.7 billion won a quarter ago and 31 billion won a year earlier.

Net profit amounted to 4.97 billion won, swinging from a loss of 7.99 billion won in the second quarter and 23.4 billion won in the same period of last year. Sales expanded 54.8 percent on quarter and 194.6 percent on year to total 74.42 billion won.

Japanese visitors to hotels and casinos jumped nearly 12-fold to 6,848 in the third quarter, GKL said.

Outlook for the fourth quarter also is bright.

Kangwon Land shares were trading 0.21 percent higher at 23,750 won by midday Friday, Paradise 6.89 percent up at 16,300 won, and GKL up 2.83 percent up at 16,350 won.