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Kangwon Land revenue recovers in 2021

| By Nosa Omoigui
South Korean casino operator Kangwon Land has recorded revenue figures of KRW788.4m (£49.0m/€58.0m/$66.0m) for 2021 – a 64.7% increase on the previous year.
Kangwon Land Resort

Gaming revenue contributed KRW697.0m to the revenue total, up 72.4% from 2020. Non-gaming revenue added a further KRW91.4m.

Operating expenses for the year came to KRW726.8m, a 33.5% increase on the previous year. Casino costs were the largest expense at KRW459.9m, followed by hotel costs of KRW135.0m.

Slot machine production cost the company KRW2.8m, and subsidiaries added further expenses of KRW22.7m. Other costs totaled KRW106.5m.

Gross profit for the year came to KRW61.6m, up 193.5% from 2020. Selling, general and administrative costs came to KRW114.3m, leaving operating losses of KRW52.7m.

When factoring in additional income of KRW72.9m, other expenses totalling KRW34.4m, and KRW17.8m of tax expenses, net losses for the year amounted to KRW10.6m – a 96.2% improvement on 2020.

The company had to deal with closures to its venues during 2021 as a result of the novel coronavirus (Covid-19) pandemic, as a number of its employees had returned positive test results.

In terms of the fourth quarter of 2021, Kangwon Land recorded revenue of KRW242.1, up 84.4% compared to the corresponding period in 2020.

Gaming revenue for the quarter came to KRW214.8m. Table game revenue was KRW98.1m, while slots added a further KRW96.1m. Membership club revenue was KRW42.8m, while KRW22.1m was paid out as High1 point bonuses to VIP customers.

Non-gaming revenue amounted to KRW27.3m, up 93.2% from 2020. Hotel revenue was KRW17.7m, condo revenue added KRW4.7m, with ski and golf resort revenue contributing a further KRW4.3m.

With operating costs of KRW227.0m, gross profit for the quarter came to KRW15.1m. General costs of KRW35.2m resulted in operating losses of KRW20.0m for the quarter, up from KRW76.1m in 2020. Net losses came to KRW11.0m, up 67.0%.

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