Kangwon land revenue doubles year-on-year in Q2

South Korean resort operator Kangwon Land reported revenue of KRW203.62bn (£127.3m/€150.1m/$175.8m) for the second quarter of 2020, up 109.0%, as easing of novel coronavirus (Covid-19) restrictions meant the business could welcome non-VIP customers.


Total casino sales including promotional funds rose 539.4% to KRW203.8bn

The rapid year-on-year increase in revenue was mostly due to the full opening of the operator’s operations, after only VIP operations were open in Q2 of 2020 in an effort to curb visitor numbers due to the novel coronavirus (Covid-19).

As a result, revenue from non-VIP table games was up from zero in Q2 of 2020 to KRW82.7bn, while slots revenue grew from zero to KRW74.0bn.

VIP revenue, on the other hand, was up by 47.6% to KRW47.1bn.

However, with KRW20.0bn worth of those sales being High1 bonus points, up 435.5%, casino revenue was KRW183.9bn.

This total revenue came on stakes of KRW879.4bn, up 506.7%, as 199,394 people - including 751 from outside of South Korea - attended Kangwon Land’s casinos.

The operator made a further KRW19.8bn in non-casino sales, of which KRW13.5bn were from hotel operations.

This led to revenue of KRW203.62bn, up 109.0%.

The operator paid KRW174.8bn in costs of sales, however, up 32.5%. Casino made up most of these costs, at KRW114.1m. Hotel costs were KRW31.3m, condo costs KRW11.6m, ski resort costs KRW7.0bn and waterpark costs KRW3.3bn.

As a result, it recorded a gross profit of KRW28.8bn, compared to a KRW34.5bn in 2020.

After general and administrative costs of KRW26.1bn, Kangwon Land’s operating profit was KRW2.70bn. This was an improvement from the KRW59.62bn loss in Q2 of the previous year.

The business then recorded non-operating income of KRW3.5m, non-operating expenses of KRW2.2m and financial income of KRW24.4m for pre-tax profit of KRW28.4m, an improvement from its pre-tax loss of KRW55.7m a year earlier.

After KRW7.5m in tax, Kangwon Land’s final profit was KRW20.91bn, compared to a KRW40.89bn profit the year before.