Paradise Co Ltd, a South Korean foreigners-only casino operator, posted revenue of KRW37.2 billion ($31.7 million) in September, a decrease of 34 percent year-on-year, but analysts said the trends on a month-on-month basis are improving with a drop of 23.6 percent from August.
Revenue from table games dropped in September to KRW33.9 billion, compared with KRW45.4 billion in the same month the year before, while gaming machine sales went up nearly 1 percent to KRW3.3 billion.
“As we had speculated, it appears that July represented the low water mark in terms of both the absolute level of gaming volume as well as the magnitude of the y/y decline (at -49% y/y),” Union Gaming wrote in a note.
August gaming volume improved to a decline of 25 percent YoY and September improved further still to a decline of 23 percent YoY on the back of visitors getting over the Middle East Respiratory Syndrome (MERS) scare.
“We would attribute the rebound to the market quickly getting back to pre-MERS levels which devastated not only gaming trends but tourism trends in general. Looking ahead we would still expect y/y trends in the Korean gaming market to show declines, which we would attribute to the same factors that are impacting Macau.”
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