The Situation Is Dire: Kangwon Land Witnessed A 63.5% Drop In FSM Revenue

Article by : Eva Reed Aug 18, 2020

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According to the official information, one of the largest Korean casino operators faced a staggering 63.5% drop in total income: £174.6 million in the first half of 2020. The casino managed to keep its doors open exclusively to VIP clients, who most influenced the bulk of the revenue for the 2nd quarter of 2020.

Most of Kangwon Land’s revenue (over £147 million) still comes from casino gaming; about 65 million pounds sterling comes from board games. The total revenue from slot machines reached over £56 million. The income not related to the casino activities looks like this:

• Income from hotel operations – over £12 million.
• Ski resort activities – over £6 million.
• Apartments for rent – over 5.8 million pounds.
• Golf courses – over 1.2 million.

The company’s gross revenue figures in 2020 look incredibly depressing. The operating loss was more than £188 million compared to Kangwon Land’s 2019 profit.

Moreover, losses before tax in the first half of 2020 reached more than 188 million pounds.

Despite the gradual reduction of restrictive measures by the state related to the coronavirus pandemic, the restart of land-based casinos did not bring the expected income. Over the past 3 months, Kangwon Land managed to generate revenue of £22.3 million. If we compare it to the figures for 2019, the drop will be more than 90.5%.

Kangwon Land’s gambling houses remained closed to the general number of players throughout the second quarter of 2020. Even though the VIP lounges continued to operate, the income from this activity was quite insignificant. Moreover, revenue from gambling tables and slot machines dropped to almost zero.

What about Kangwon Land’s non-gaming sources of income? Golf courses are the most valuable of them, while the hotels’ activity is the less significant at the moment: their revenue fell to a record of 92%. It seems that the company’s management is desperate to take all measures to reduce operating costs. However, such steps cannot significantly affect the reduction of total losses from different types of activities.

It is worth noting that the largest Kangwon Land’s casino, located in Jeongseongun, was able to reopen its doors to visitors from July 1, 2020. Due to the situation with Covid-19, the gambling establishment has been idle since February and suffered colossal losses every month. Currently, it is impossible to see even the approximate period when these tough times will end.

On May 27, Kangwon Land held a rehearsal to eliminate possible shortcomings that could be caused by reopening. The operator made sure that all the chips and the area around the casino passed the mandatory sterilization procedures. Moreover, casino employees are required to remind customers of the compulsory need to maintain social distance.

Currently Kangwon Land, inc. organizes and promotes casinos, hotels, and entertainment services. The main areas of work include hotels, ski resorts, casinos, conference rooms, etc.

The gambling establishments run by Kangwon Land have gained immense popularity due to a large number of gaming tables and a wide variety of games. The company also takes part in the management of national judo and other sports teams.