S.Korea's Kangwon Land Q2 Net Profit Down 14%
Kangwon Land, the Korean casino operator, said its net profit fell 14.4 percent in the three months to June 30 from a year earlier. The profit was nearly 94.6 billion won (US$84.1 million) compared to 110.4 billion won in the second quarter of 2017.
The company operates the Kangwon Land Casino Resort (pictured), which is the only casino system in the country that can serve local players. The property is located on a remote mountainous area in Gangwon Province, 150 kilometers (93 miles) from the capital, Seoul.
Sales totaled 338.7 billion won in the April-June period, down 9.2% from 372.9 billion won a year earlier.
Our quarterly operating profit fell 15.1% year-on-year to about 115 billion won.
Kangwon Land reported W311.3 billion in gaming sales for the three months ended June 30, down 9.1 percent from a year earlier. Kangwon Land saw a drop in all its gaming categories, with sales in the mass sector falling 9.4 percent from a year earlier to W151.6 billion. The sales revenue of its so-called "membership club" was W54.4 billion, down 18.1 percent from a year earlier.
Non-game sales fell 9.5% year-on-year to 27.4 billion won in the second quarter, the company said in a separate announcement on Thursday.
"Gangwon Province posted a weak performance (5% versus consensus)," brokerage JPMorgan Securities (Asia-Pacific) said in a note on Thursday. "On the positive side, we don't think the trend is going to get much worse here," analysts DS Kim and Sean Zheng wrote in a note on Thursday.
"The results reflect regulatory headwinds such as the revenue ceiling [policy], shorter tables and hours of operation, stricter VIP membership standards, and a shortage of dealers," the JPMorgan team said.
This was understood to be referring to the Korean president's decision to order the dismissal of 226 Kangwon Land employees, according to a survey that 226 Kangwon Land employees were unfairly employed, as reported by Yonhap News in March.
Kangwon Land reduced its daily opening hours from Apr. 1 in accordance with the Korean government's order. The casino on the property is now open to the public from 10 a.m. to 4 a.m. the next day. Kangwon Land's casino was previously open from 10 a.m. to 6 a.m. the next day.
The company has also been ordered to reduce the number of mass tables from a maximum of 180 to a maximum of 160 from January 1, 2018.
For the six months to June 30, the company posted a cumulative profit of about 185 billion won, down 23.0% from a year earlier.
BY: 슬롯사이트
bsc news 2024 safety slot site Contacter l'auteur de la pétition