Casino operator Paradise’s operating profit surges 140% in Q2

[THE INVESTOR] Korea’s leading casino operator Paradise Group has logged solid second-quarter earnings, showing signs of recovery from last year’s slowdown.

The group -- whose casino operations account for 85 percent of its business, besides hotels, integrated resorts and construction -- posted a consolidated operating profit of 32.76 billion won (US$29.4 million) in the quarter ended on June 30, up 147.6 percent from a year earlier, it said on Aug. 4.

The firm’s consolidated revenue rose 32.2 percent to 189 billion won and net profit surged 113.6 percent to 27 billion won.

The upswing is largely due to a base effect after it suffered from a drop in tourist numbers following last year’s outbreak of Middle East respiratory syndrome alongside China’s crackdown on marketing to VIP mainland clients.

Kangwon Land, the only casino in South Korea that allows local residents to gamble, saw improved earnings in the April-June period. Its revenue increased 5.9 percent to 411.8 billion won and operating profit rose 8.4 percent to 160.2 billion won.

A growing number of visitors contributed to the improvement. Some 730,000 people visited Kangwon Land during the three-month period, the firm said.

By Park Han-na (hnpark@heraldcorp.com)