Back »

South Korea – Kangwon Land confirms worst quarter for five years

Posted by

Kangwon Land, the only South Korean casino operator allowed to let locals play, saw its second quarter profit fall by 10.7 per cent to US$96.9m, making it the casino’s worst performance in five years.

GGR fell by six per cent to US$338.9m whilst non-gaming revenue increased by 11.1 per cent to US$10.51m.

JP Morgan Securities analysts DS Kim and Sean Zhuang said: “Kangwon Land’s second quarter was weak, with operating profit falling 15 per cent year-on-year and missing estimates by [about] 10 per cent, dragged by a lower-than-expected top line. The disappointment came from mass (down nine per cent year-on-year) and slots (down seven per cent), while VIP (down three per cent) didn’t help either. In our view, this seemingly reflects Kangwon Land’s efforts to ‘adjust’ revenues lower amid regulatory scrutiny, and the timing of business normalization remains frustratingly uncertain.”

Daiwa Securities Analyst Thomas Kwon added: “We forecast Kangwon Land’s revenue and earnings to grow 9.6 per cent year-on-year and 12.6 per cent year-on-year in 2018.”

Comments are closed.

Related Stories

Rank – Tighter controls take a hold of Rank’s revenues

Rank said that tighter regulations on money laundering alongside a drop in play at its bingo halls brought its full-year profits down. Like for like r...
Read More

US – MGM National Harbor leads the way in Maryland

Maryland Lottery and Gaming today announced July 2017 revenue numbers for the state’s Maryland’s six casinos generated $138,756,987 in revenue dur...
Read More