Paradise Inc., which operates foreign-only casinos in South Korea, posted a net loss of nearly 31.88 billion won in the second quarter, up from 2.46 billion won in the first three months of its opening in 2020 and 2.06 billion won in the same period a year earlier. In a release on Tuesday, the company said gaming and non-gaming sales plummeted due to the COVID-19 pandemic.
Paradise saw its overall revenue fall 68.1% year-over-year in the second quarter to nearly 74.64 billion won. The group's casino sales in the period edged above 35.55 billion won, down 65.7% year-over-year, due to "travel restrictions" implemented as part of efforts to contain the COVID-19 pandemic, the company said in a filing.
The group's second-quarter earnings (EBITDA) before interest, taxation, depreciation and amortization were negative at 18.26 billion won, compared with nearly 32.44 billion won in the second quarter of 2019 and 31.56 billion won in the first quarter of 2020.
Paradise Co. closed its four casino sites for two weeks on Mar. 24 following South Korea's efforts to curb the spread of COVID-19 in the country. Some of its non-gaming services, such as entertainment venues, were also shut down. The group reopened its casinos on April 13 on Jeju Island. It then resumed operations at the remaining three gaming venues on April 20.
In its latest results release, the group said it had begun implementing cost-cutting measures to "reduce operating losses" amid the negative impact of the coronavirus. Paradise said its "restructuring plan" includes unspecified periods of paid and unpaid leave and "voluntary retirement programs."
In addition to being interested in Paradise City Casino Resort (pictured), Paradise has three other casino complexes: Walkerhill in Seoul, Jeju Grand on Jeju Island, and Busan Casino in the southern port city of Busan.
Paradise City's overall sales in the second quarter, a joint venture with Japan's Sega Sammy Holdings Inc., fell 75.4% year-on-year to 26.02 billion won. During the period, Paradise City's casino sales fell 81.5% year-on-year to 15.99 billion won.
Starting July 1, the Korean company suspended some non-game facilities in Paradise City, including Hotel Art Paradiso, Club CROMA, CIMER, and Theme Park Wonder Box. The suspension of these facilities due to the surge in the number of COVID-19 infections in Korea will remain "until further notice," according to an announcement on the official website of Paradise City.
