Kangwon Land lost $38m in Q2
Kangwon Land Inc, the only South Korean casino catering to domestic players, reported a net loss of KRW45.6bn ($38.4m) for Q2. While this is an improvement on the KRW156.1bn loss in Q1, it’s still a massive drop from the net profit of KRW50.9bn the previous year.
Gross gaming revenue for Q2, relying mostly on the “Membership Club” segment, was KRW28.3bn, a 91% drop compared to the previous year.
The company’s operating loss was KRW103.8bn, compared to the operating profit of KRW172.8bn in 2019. The loss is 20% higher than anticipated.
Also, revenue from total sales was KRW34.6bn, down by almost 91% from KRW364.2bn the previous year.
But the casino is nearing 50% capacity with the easing of health and safety regulations. The property opened half of its slot machines and 440 game tables (close to 35%), with numbers set to increase in the future. The number of guests admitted at one time also increased from 750 to 1,800. Analysts predict that VIP revenue should “fully recover next quarter”, with revenues stabilising to 2019 levels by H2 2021.
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