Jeju Dream Tower 3Q GGR down, confirms charter flights

November 14, 2022 Earnings & Filings Industry Updates

The operator of the Jeju Dream Tower casino resort, on the South Korean holiday island of Jeju, reported on Friday third-quarter gross gaming revenue (GGR) of KRW12.6 billion (US$9.6 million), down 17.6 percent from the KRW15.3 billion achieved in the preceding quarter.

Lotte Tour Development Co Ltd said however that revenue from its mass-market tables for the period rose by 15.2 percent quarter-on-quarter, to nearly KRW9.1 billion.

The tally of visits to the property’s gaming venue for the three months to September 30 was 24,589, an increase of 24.8 percent from the previous three months, stated the firm in a press release.

The company said additionally that VIP-segment revenue for the period fell by 52.1 percent quarter-on-quarter, to about KRW3.5 billion. VIP rolling chip volume for the July to September period was nearly KRW73.7 billion, down 39.1 percent from the second quarter this year.

Lotte Tour Development said aggregate third-quarter gaming sales for the venue were KRW10.5 billion, after deducting rebates and commissions; a decline of 13.9 percent from the previous quarter.

Group wide, Lotte Tour Development reported a third-quarter operating loss of KRW27.0 billion, and negative earnings before interest, taxation, depreciation, and amortisation (EBITDA) of KRW5.6 billion. That compared to an operating loss of nearly KRW28.8 billion, and negative EBITDA of KRW8.6 billion in the second quarter.

In Friday’s release, Lotte Tour Development confirmed that it wouldaff arrange a number of round-trip air charters for some of its patrons. In late October, the company told GGRAsia it was to organise two round-trip air charters to Jeju via Tokyo Narita airport Japan, for Japanese VIP players recruited by junkets and travel agencies. The first trip was due to take place in early November, with the second planned for late December.

On Friday, the firm said it would also organise round-trip air charters via Hong Kong airport: five in November, and two in December; and three via Kuala Lumpur airport in Malaysia: one per month between January and March next year.