Дохід Paradise Casino у червні впав на 21,2%, оскільки рівень утримання знизився до 9,0%.

Paradise casino reported June revenue of 632 billion won, down 21.2% from the prior year, as the hold rate declined to 9.0% from 13.0% in the same period last year. The company attributed the revenue decrease partly to the lower hold rate, which measures the percentage of chip purchases retained by the casino. Despite the June slowdown, Paradise's second-quarter revenue reached 2,487 billion won, up 8.6% year-over-year, driven by strong April and May performance.

Paradise June Revenue Declines on Lower Hold Rate

According to industry sources on the 8th, Paradise casino's June revenue totaled 632 billion won, representing a 21.2% decrease compared to the same period last year. The company explained that the decline in hold rate partially contributed to the revenue drop. The June hold rate stood at 9.0%, down 4.0 percentage points from 13.0% in the prior year. In April and May, hold rates were 12.5% and 12.1% respectively.

Hold rate represents the percentage of total chip purchases (drop amount) that the casino ultimately retains. Higher drop amounts and hold rates lead to increased casino revenue. The growth rate of drop amount also slowed in June. The year-over-year drop amount growth rate declined from 18.7% in May to 10.3% in June. May saw a significant increase in drop amount as foreign visitors surged during Japan's Golden Week and China's Labor Day holidays.

Second Quarter Revenue Grows 8.6% Year-Over-Year

Despite June's performance, the second quarter results were evaluated as favorable. April and May revenues increased 30.0% and 20.3% respectively. As a result, second-quarter revenue reached 2,487 billion won, up 8.6% from the prior year, exceeding the first quarter's growth rate of 1.4%.

Analysts Forecast Record Performance from Third Quarter

Securities firms presented a positive outlook for the second half. Lee Ki-hoon, researcher at Hana Securities, stated: "With the overlap of high inbound growth (foreign travel to Korea) and a weak won, growth will continue in the second half. Paradise will record its largest-ever performance starting from the third quarter due to expanded competitiveness in attracting VIP customers and the hotel acquisition effect."

Kim Min-young, researcher at Meritz Securities, also assessed: "Expectations for the third quarter peak season remain valid with Japan's Obon festival in August, Chuseok holidays in September-October, and China's National Day in October."

Paradise Acquired Hyatt Hotel to Expand Room Capacity

Paradise Segasammy, a subsidiary of Paradise, held a board meeting in September last year and decided to acquire the Grand Hyatt Incheon West Tower in Yeongjong Island, Incheon, from Kaljin Group's subsidiary Kal Hotel Network for 210 billion won. Paradise's acquisition of the Incheon Hyatt Hotel was a measure to secure room capacity. Casino companies typically attract customers by providing complimentary rooms and other amenities.

On the previous day, Paradise [034230] stock closed at 13,410 won, up 2.44% from the previous session.

FAQ

What caused Paradise casino's June revenue to decline? Paradise casino's June revenue of 632 billion won declined 21.2% year-over-year primarily due to a lower hold rate of 9.0%, down from 13.0% in the same period last year. The growth rate of drop amount also slowed to 10.3% in June from 18.7% in May.

How did Paradise perform in the second quarter overall? Paradise's second-quarter revenue reached 2,487 billion won, representing an 8.6% increase year-over-year. This growth was driven by strong April and May performance, with revenues increasing 30.0% and 20.3% respectively during those months.

Why did Paradise acquire the Grand Hyatt Incheon West Tower? Paradise Segasammy acquired the Grand Hyatt Incheon West Tower for 210 billion won in September last year to secure additional room capacity. Casino companies typically use complimentary rooms and amenities to attract and retain customers.