Hold Rate Decline... Paradise's Q3 Operating Profit Down 37% YoY

On a Consolidated Basis, 36.2 Billion KRW
Sales of 268.2 Billion KRW... Down 6.1%

Paradise received a disappointing performance report for the third quarter of this year due to a decline in the hold rate (the ratio of casino winnings from games) at its foreign casinos.

Paradise announced on the 8th that its consolidated operating profit for the third quarter was tentatively estimated at 36.2 billion KRW, a 36.6% decrease compared to the same period last year. During the same period, sales decreased by 6.1% to 268.2 billion KRW.

Paradise City Casino exterior. Courtesy of Paradise

The combined sales of Paradise casinos operating in four locations?in Paradise City on Yeongjong Island, Incheon, Walkerhill in Seoul, Jeju, and Busan?amounted to 194.7 billion KRW in the third quarter, down 8.8% from the same period last year.

Instead, the casino drop amount (total chip purchase amount) reached 1.7732 trillion KRW, marking the highest quarterly figure. By subsidiary, Paradise's third-quarter operating profit was 1.5 billion KRW, a 93.9% decrease compared to the same period last year, while Paradise Segasami's third-quarter operating profit increased by 9% to 27.1 billion KRW. Paradise Hotel Busan's operating profit rose by 5.8% to 7.4 billion KRW.

A Paradise official stated, "Sales slightly decreased due to the decline in the hold rate, but the drop amount, a growth indicator for casinos, continues to increase," adding, "We expect sales to increase significantly once the hold rate recovers."

He also said, "As part of the casino alliance strategy, we will open a VIP lounge at the Gimpo Airport international terminal casino at the end of this month," and added, "To capitalize on the year-end peak season, we plan to accelerate efforts to expand the global market by participating in MICE and tourism fairs in major Asian countries such as Singapore, Taiwan, and Thailand."