Kangwon Land, a gambling establishment in South Korea, experienced a notable upswing in earnings during the third quarter, fueled by a surge in patrons following the relaxation of COVID-19 limitations.
The company’s total income for the quarter reached 2,452 billion won, a substantial 220.1% increase compared to the same period last year. This was driven by a sharp rise in non-VIP gaming revenue.
The casino welcomed 254,188 guests, including 1,342 from outside Korea, marking the first time since the pandemic that the number of international visitors surpassed 1,000. Total wagers placed at the casino skyrocketed by 312.5% to 1.07 trillion won, resulting in a 272.4% increase in total gaming revenue to 2,359 billion won.
Non-VIP tables contributed the most to the revenue surge, generating 926 billion won, a staggering 761.7% increase compared to the third quarter of 2020. Slot machines also saw a significant increase, generating 912 billion won, a 372.1% jump. VIP tables, the only segment fully open during the third quarter of 2020, generated 521 billion won, a 51.5% increase.
Excluding 229 billion won paid out in high-value points, Kangwon Land’s net casino revenue reached 2,130 billion won. This contributed to the company’s overall net revenue of 2,452 billion won, a 220.1% increase.
The company also generated 323 billion won from non-gambling activities, an 82.2% increase compared to 2020. The majority of this revenue, 195 billion won, came from the hotel, while condo revenue increased by 5 billion won.
Kangwon Land’s earnings rose by 4.7 billion won, hitting 4.7 billion won, and golf earnings rose by 4 billion won.
Kangwon Land’s cost of products sold was 193.1 billion won, a climb of 67.9% year-over-year. Casino cost of products sold made up the majority, nearly doubling to 123.9 billion won. Hotel cost of products sold climbed by 34.4% to 35 billion won, and condo cost of products sold rose slightly to 13.9 billion won.
As a result, Kangwon Land’s yearly gross profit shifted from a loss of 38.4 billion won in the prior year to a profit of 52.2 billion won.
Kangwon Land’s operating profit was 24.3 billion won after subtracting selling, general and administrative costs of 27.9 billion won. In the third quarter of 2020, it recorded an operating loss of 64.9 billion won.
Kangwon Land then earned a net profit of 4 billion won from financial products and interest, bringing its pre-tax profit to 28.3 billion won. This is a substantial difference from the pre-tax loss of 55.3 billion won in 2020.
After paying 7.9 billion won in taxes, Kangwon Land recorded a final net profit of 20.4 billion won. This is an increase from the loss of 40.9 billion won in the third quarter of 2020.
Sign up for the iGaming newsletter