Kangwon Land’s profits recover as the number of visitors increases in Q3

The gross gaming revenue was KRW235.9bn (up 272.4%). Total stakes were KRW1.07tn (up 312.5%), and Kangwon Land casinos had 254,188 visitors, an increase of 312.5%. This included 1,342 visitors from outside South Korea. It was the first time that this number exceeded 1,000 since pandemic started.

The revenue from non-VIP table games was the highest, with KRW92.6bn. This is up by 761.7% compared to Q3 2020. Slot machines generated KRW91.2bn in revenue, an increase of 372.1%. The VIP tables, the only part of Kangwon Land’s gaming operation that was open fully in Q3 2020, brought in KRW52.1bn. This was a 51.5% increase.

Kangwon Land’s casino net sales were KRW213,0bn after subtracting KRW22.9bn, paid in High1 points.

The total sales rose by 220.1% to KRW245.2bn.

This is an increase of 82.2% over 2020. This was mainly due to hotel revenue, which amounted to KRW19.5bn. Condo revenue increased to KRW5.4bn, and golf revenue to KRW4.7bn.

The cost of selling Kangwon territory increased by 67.9% to KRW193.1bn. The casino accounted for the majority of these sales costs, which almost doubled from KRW123.9bn to KRW193.1bn. The hotel costs of sale increased by 34.4%, to KRW35.0bn. Condo costs of sale also increased to KRW13.9bn.

Kangwon Land had a positive gross profit of KRW52.2bn for the past year, following a gross loss of KRW38.4bn the previous year.

Kangwon Land made KRW24.3bn operating profit after KRW27.9bn of selling, administrative and generative expenses. It had an operating loss KRW64.9bn in Q3 2020.

This business received KRW4.0bn from interest and financial instruments, which resulted in a profit before tax of KRW28.3bn. That’s a big difference from the loss that 2020 had, KRW55.3bn.

Kangwon Land’s net profit after tax was KRW20,4bn. The operator’s third-quarter 2020 loss of KRW40.9bn was replaced by a KRW20.4bn net profit.