Gangwon Land Sees Strong Earnings Recovery in 2021

The South Korean casino operator, Gangwon Land, saw a strong recovery in its earnings for 2021, reaching 788.4 billion won (around 49 million pounds/58 million euros/66 million dollars), a significant 64.7% increase from the previous year.

Gaming revenue contributed a substantial 697 billion won, marking a 72.4% jump from 2020. Non-gaming revenue also saw a positive change, increasing by 9.14 billion won.

The company’s operational expenses rose to 726.8 billion won in 2021, a 33.5% increase from the prior year. Casino expenses were the largest contributor to this increase, reaching 459.9 billion won, followed by hotel expenses at 135 billion won.

Slot machine production costs amounted to 2.8 billion won, with subsidiaries adding an additional 22.7 billion won in expenses. Other expenses totaled 106.5 billion won.

Gross profit for 2021 was 61.6 billion won, a substantial 193.5% increase from 2020. Sales, general and administrative expenses were 114.3 billion won, resulting in an operating loss of 52.7 billion won.

Taking into account additional income of 72.9 billion won, other expenses of 34.4 billion won and tax expenses of 17.8 billion won, the net loss for 2021 was 10.6 billion won, a significant improvement of 96.2% from 2020.

The COVID-19 pandemic had a noticeable impact on Gangwon Land, leading to the closure of its facilities in 2021 as many employees tested positive for the virus.

In the final quarter of 2021, Gangwon Land’s revenue reached 242.1 billion won, an impressive 84.4% increase from the same period in 2020.

In the recent period, the company’s gaming earnings were a staggering 21.48 billion South Korean won. Traditional table games generated a substantial 9.81 billion won, while slot machines collected a significant 9.61 billion won. Their membership program contributed 4.28 billion won, with 2.21 billion won going to high-value customers in the form of High1 points rewards.

Non-gaming income was a robust 2.73 billion won, showcasing a substantial 93.2% increase compared to the previous year. Hotel revenue reached 1.77 billion won, apartment revenue was 470 million won, and ski and golf facilities generated 430 million won.

Operational expenses amounted to 22.7 billion won, resulting in a gross profit of 1.51 billion won for the quarter. General and administrative costs were 3.52 billion won, leading to an operating deficit of 2 billion won for the quarter. This represents a significant improvement from the 7.61 billion won loss they incurred last year. The net loss was 1.1 billion won, marking a 67% increase.

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