Casino op Kangwon Land posts US$36.6mln 3Q loss

Nov 10, 2020 Newsdesk Latest News, Rest of Asia, Top of the deck  

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South Korea’s Kangwon Land Inc reported a nearly KRW40.86-billion (US$36.6-million) loss in the third quarter, compared to a KRW128.65-billion profit in the prior-year quarter. The latest quarterly result was still an improvement from the KRW45.56-billion loss recorded in the second quarter of 2020, according to a Tuesday filing.

The firm operates Kangwon Land (pictured), a resort with the only casino in South Korea that is permitted to serve domestic players.

The casino operator reported sales of KRW76.62 billion in the three months to September 30, down 81.1 percent from the prior-year period, but up 121.2 percent sequentially. Gross gaming revenue for the period fell by 83.3 percent year-on-year, to KRW58.9 billion, but rose 108.1 percent from the preceding quarter.

According to Tuesday’s presentation, Kangwon Land’s revenue from the membership club segment amounted to KRW33.3 billion in the third quarter of 2020, up by 4.4 percent sequentially, but down 49.2 percent from a year earlier.

Sales in the mass table segment stood at KRW10.7 billion in the third quarter, while sales from slot machines were KRW19.3 billion, down 93.7 percent and 87.3 percent, respectively.

The group did not give commentary on the reasons for the fall in casino sales. But the resort’s casino had closed for a second time on August 23, amid a spike of Covid-19 infections nationally.The company resumed operations in mid-October of its gaming facilities at limited capacity.

Accumulated sales for the first nine months of 2020 fell by 69.7 percent year-on-year, to nearly KRW347.26 billion. The company booked a loss of just above KRW242.53 billion for the period, compared to a profit of KRW282.04 billion in the first nine months of 2019.

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