The South Korean casino operator, Kangwon Land Casino recently made a release of their first quarter report. According to the data, Kangwon Land Casino is showings Profit despite Sales Falling in the first quarter. Therefore, this report is a relief for casino gambling investor as the falling sales have been a cause for worry.
According to online casino news, the Q1 report says the overall sales fell by 0.03% in comparison to last year. Thus, it went from KRW 3777.5 billion to KRW 329 billion in the three months ending in March of 2019. In addition, this is a 1.2% sales decline in comparison to the same period of time last year. However, the cost of operating the casino was down by 0.7% which is around KRW 125 billion.
Kangwon Land Casino showing signs of a Turnaround
In spite of these decreases, the company said the net revenue rose 13.3% to KRW102.4b. Thus, the margin had an improvement of 3.2 points to 27.1%. According to the latest gambling industry news, the profit was the best outcome in over a year. In addition, the Q1 gaming income figure, while down year-on-year, was the highest increase over the last four quarters.
According to gambling analyst, the successive income improvement is because of the property’s Membership Club,’ otherwise known as VIP betting. This is because it went up 12.7% year-on-year to KRW61.2b. However, table games were down 0.4% to KRW 164b while opening machines were off 5.6% to KRW 137b. In general table drop was up 1.1% to KRW1.57 trillion. All out non-gaming income improved 6.4% to KRW48.4b.
Kangwon Land Casino is the only venue where Koreans are able to play slot machines and table games. Furthermore, the report shows a 2.1% increase in visits during Q1. Thus, regardless of the quantity of outsiders crossing its threshold falling 8.8%.
Gambling experts are hoping that Kangwon Land’s Q1 bounce back may demonstrate the company is improving. This is because after several executives of the company were prosecuted for wrongdoings the company can use some good news.
