Kangwon Land returns to Q2 earnings surplus

Kangwon Land, the operator of the South Korean casino resort of Kangwon Land (pictured), posted a net profit of nearly 20.9 billion won in the second quarter, compared with a net loss of 40.9 billion won in the previous quarter and a loss of 45.56 billion won a year ago, according to the company's unaudited financial results released Tuesday.

Kangwon Land is the only casino resort in Korea that can offer casino gambling to locals. Although such a limit was still below 50 percent of pre-COVID-19 pandemic levels, the property was allowed to double its maximum guest capacity for casino floors in June.

The property, however, was further limited in July to the casino's maximum daily guest capacity, which was adjusted to coincide with stricter social distancing rules in Gangwon Province, where Kangwon Land is located.

Despite Kangwon Land's return to profit in the second quarter, its cumulative net loss in the first half of this year is over 19 billion won.

Sales in the second quarter of this year were 203.6 billion won, a nearly 488% jump from 34.6 billion won in the second quarter of 2020. Quarterly sales were up 109% from 97.4 billion won tallied in the January-March period of 2021.

Game sales in the second quarter reached 183.9 billion won, up 550.4 percent from 28.3 billion won a year earlier. Game sales in the second quarter, which were measured sequentially, also rose 115.3 percent from 85.4 billion won a quarter earlier.

Non-game sales rose 210.4% year-on-year to 19.8 billion won in the second quarter, up 64.4% from the 12 billion won achieved in the previous quarter.

Kangwon Land had an operating profit of 2.7 billion won in the second quarter, a reversal from the operating loss recorded in the fourth quarter.

Game gross sales (GGR) in the second quarter were KRW 203.8 billion, up 539.4% year-on-year and up 107.3% from the KRW 98.3 billion achieved in the first quarter.

Of the second quarter's GGR, a total of W82.7 billion came from mass gaming tables and another W74 billion came from slot machines. The property's 'membership club', which stands for facilities for premium players, generated a GGR of W47.1 billion in the second quarter. Both the mass gaming and premium gaming sectors grew sequentially.

Kangwon Land's GGR once again emphasized that it is subject to the sales cap policy from South Korea's National Gambling Management Board.

Kangwon Land's decline in the second quarter of this year was KRW 879.4 billion, up 506.7% year-on-year, and 111% sequentially.

Kangwon Land properties, which are mostly locals, had 199,394 visitors in the second quarter of this year, a sharp increase compared with just 2,364 a year ago, and just over 87,200 in the first quarter of this year.

BY: 바카라사이트 순위