Kangwon Land returns to profit in 2Q21

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Kangwon Land, the only casino in South Korea open to locals, returned to profit in the three months to 31 June 2021 despite suffering ongoing domestic impacts from the COVID-19 pandemic.

According to the companys 2Q21 financial statements, Kangwon Land recorded a net income attributable to owners of the parent of KRW20.9 billion (US$18.1 million), improved from a loss of KRW45.56 billion (US$39.5 million)during the same period last year and a loss of KRW40.89 billion (US$36.5 million) in Q1.

The improvement came on the back of a 488% year-on-year increase and a 109% sequential quarterly increase in gross gaming revenue to KRW203.62 billion (US$176.6 million), of which KRW183.9 billion (US$159.5 million)is listed as casino sales, up 550% year-on-year and 115% quarter-on-quarter.

Kangwon Land said mass tables accounted for KRW82.7 billion (US$71.7 million)in casino sales, slot machines KRW74.0 billion (US$64.2 million)and membership (VIP) club KRW47.1 billion (US$40.9 million). The membership club had been the only segment to drive any sales at all during the June quarter of 2020.

Operating income for the period was KRW2.70 billion (US$2.3 million)versus a loss of KRW103.8 billion (US$90.0 million)in 2Q20 and loss of KRW59.62 billion (US$53.2 million) in 1Q21, with visitation of almost 200,000 compared with just 2,364 in 2Q20.

Although open throughout the quarter, Kangwon Land has continued to face capacity restrictions, with a maximum of 1,200 guests allowed through April and May, increased to 2,300 from mid-June.