[Market Focus] Paradise Drops Over 11% on Disappointing Q3 Earnings

Paradise is experiencing a drop of more than 11% in early trading.

As of 9:05 a.m. on November 11, Paradise was trading at 15,250 won, down 1,940 won (11.29%) from the previous day.

Poor performance appears to have dragged down the stock price. The previous day, Paradise announced in a regulatory filing that its consolidated sales for the third quarter of this year amounted to 288.2 billion won, with operating profit at 39.5 billion won, based on preliminary figures. While these numbers represent increases of 7.5% and 9.1%, respectively, compared to the same period last year, they fell short of market expectations.

Park Sooyoung, an analyst at Hanwha Investment & Securities, stated, "Paradise's third-quarter results fell short of expectations in terms of operating profit," adding, "Both the hotel and casino businesses posted solid results during the peak season in July and August, but the casino's monthly performance in September was weaker than expected. As a result, the burden of fixed costs became more pronounced, making it inevitable for operating profit to fall short of initial expectations."

Lee Hwajeong, an analyst at NH Investment & Securities, commented, "Profitability deteriorated due to increased fixed costs from proactive hiring, and the occurrence of one-off expenses totaling 2.6 billion won contributed to the third-quarter earnings shock."

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