Financial results of the casinos in South Korea suggest that the company is finally done with the crisis caused by the COVID-19 pandemic and the restrictions that followed it. The renowned Korean company Kangwon Land announced the financial results and earnings in the second quarter of the financial year, and it was KRW 89.2 billion (or US$68.5 billion) in net profit during the quarter. However, the drop is recorded compared to the first quarter of the year.
Casino for Koreans:
Kangwon Land is a special place in South Korea, especially for the state’s residents. It is the only place in the country where Koreans can place their bets and play various games. The casino is situated inside the Kangwon Land Resort in the province of Kangwon, South Korea.
The profit in the casino increased by 138.3 percent compared to the company’s earnings in the year before. However, it is 12 percent less than in the first quarter of 2023.
When it comes to the sales revenues, they were 7.5 percent lower than in the first three months of this financial year. The earned amount was KRW 331.1 billion, or $253.5 million. Gaming was the most profitable source of revenue, so it brought KRW 294.3 billion, or $225.3 million, in revenue.
Huge decrease in revenue:
The Kangwon’s reporting subdivisions reported that gross gaming revenues were 7.5 percent lower compared to the previous quarter. Mass table revenue also dropped, and in the second quarter, it was KRW158.3 billion, or $121.1 million.
The second-highest source of revenue were, as expected, slot games. They earned KRW135.2 billion, or $103.4 million, which is less than during the first quarter of the year. The decrease isn’t too big – 2.5%.
However, the company is worried about its membership club since its decrease of 2.3 percent led to earnings of just KRW26.6 billion ($20.3 million).
Considering all the decreases, the total drop was huge. The total amount that the casino lost is KRW1.41 trillion, or $1.08 billion.
When it comes to the number of visitors, in three months, between April and June, the total number of visitors was 576.206. The drop is recorded in that field as well since the number of visitors was 7.7 percent lower than in the first quarter. Of that number, 5.303 were foreign tourists, and others were Korean residents.
The group will keep its integrated resort operations, but reportedly, the company announced in January that the next step is expansion to the Philippines. In the Philippines, the company will be a gaming machine supplier since it already supplies its casino.