Paradise Expects Short-term Drop in Profits

The opening of the Paradise City casino in Incheon, South Korea may negatively affect short-term operating profits of operator Paradise Co. Ltd., say analysts. The resort is due to open in April.

Near international airport

South Korean casino operator Paradise Co. Ltd. could see a short-term drop in profits on the opening of its new Incheon casino. But the new Paradise City integrated resort should boost the firm’s revenue and income from 2018 onward, says Seoul-based brokerage Shinhan Investment Corp.

According to GGRAsia, Shinhan expects Paradise to report consolidated operating profit of about KRW54.6 billion (US$48.2 million) for 2017, down 16.5 percent year-on-year. That loss will be followed by a surge of 53.3 percent year-on-year in 2018, to KRW83.7 billion.

“Operating profit is projected to drop 57 percent year-on-year in first half 2017 due to cost hikes. However, it is expected to improve six quarters in a row from third quarter 2017 on the inflow of sales from Paradise City,” wrote analyst June-won Sung.

A joint venture of Paradise Co. and Japanese pachinko operator Sega Sammy Holdings Inc., Paradise City is located near the international airport serving the capital city of Seoul. It is scheduled to open in April.

Paradise Co. now operates five foreigner-only casinos in South Korea.