Paradise announced on the 10th that it had sales of 105.2 billion won and operating loss of 20.6 billion won in the second quarter of 2022.
Sales of 105.2 billion won in the second quarter increased 24.3 percent from 84.6 billion won in the same period last year. The operating loss of 20.6 billion won in the second quarter is also a 24.7% decrease from 27.4 billion won a year earlier.
Compared to the first quarter, its performance improved somewhat, but it still did not escape from operating losses. Sales of 105.2 billion won in the second quarter rose 5.5 percent from 99.7 billion won in the first quarter, while operating losses of 20.6 billion won in the second quarter fell 19.2 percent from 25.5 billion won in the first quarter.
On the other hand, net profit in the second quarter was 10.8 billion won, which turned into a surplus from a net loss of 36 billion won in the first quarter, but it seems to reflect one-time profits from the sale of assets held.
The first half of 2022 earnings were found to have further increased operating losses and net losses, excluding sales growth. Consolidated sales in the first half of this year were 204.9 billion won, up 13.1% from 181.3 billion won in the first half of last year.
On the other hand, operating loss in the first half of this year was 46.2 billion won, 16.5% more than 39.6 billion won in the same period last year. Net loss in the first half of the year also increased further. Net loss in the first half of the year was 25.2 billion won, which was 802.4% higher than 2.8 billion won in the same period last year. Excluding one-off profits from the sale of assets held in the second quarter, it is analyzed that the loss would have increased further.
Paradise’s casino sales were found to be lower in the second quarter than in the first quarter of this year. Monthly casino sales announced this year were 53.7 billion won in the first quarter and 47.2 billion won in the second quarter, which is lower in the second quarter. Paradise Casino is for foreigners only. The spread of COVID-19 in the first quarter and the re-proliferation in the second quarter are believed to have led to a decline in the inflow of foreign tourists.
Paradise’s sales composition is divided into casino income, room rate income, food and beverage income, and other income. Among them, casino sales accounted for 60.2% as of 2021.
Paradise’s casino sales more than doubled to 27.4 billion won in July from 13 billion won in June. If casino sales continue the same trend as July, we can expect a significant improvement in performance in the second half.
Kiwoom Securities is FarahIn a report on IS, it said, “We expect operating profit of 37.8 billion won in the second half and annual operating loss of 8.3 billion won.”
