South Korea casino operator Grand Korea Leisure reported a 57% increase in visitation numbers from Chinese gamblers in its casinos compared to its numbers a year ago, quelling fears that China’s tightening grip on the ability of its VIP gamblers from gambling in other casinos would have a direct effect on casinos’ ability to draw in these high rollers.
In the fourth quarter of 2014, Grand Korea Leisure reported that it welcomed a total of 510,000 visitors in its three foreigners-only casinos, a number that was 34% better year-on-year. Of this total, Chinese gamblers accounted for 40% of gambling visitors with Japanese gamblers coming in at second at 28%.
“There was no slowdown in Chinese gamer traffic,” Daiwa Securities Group analyst Thomas Kwon said. “[GKL] benefited from robust visitor traffic for VIP floor and mass-table games from all countries including China.”
In the same time period, GKL reported an increase in its revenue by 5% to KRW149 billion ($134.8 million) while operating profit shot up by 4% to KRW40 billion ($36 million) year-on-year. The numbers were still below Daiwa’s forecast of KRW45.2 billion ($40.8 million) but it was still good enough to post a net profit of KRW31 billion ($28 million), an increase of 21% compared to its numbers in the same time period a year ago.
Meanwhile, Donaco International has successfully raised almost $72 million through a successful share placement, thanks to an entitlement offer to some of its new investors. The casino operator told the Australian Securities Exchange that the shares placement will net the company 154,014,665 new shares, which it began trading on February 11, 2015. Similarly, a retail component to Donaco’s entitlement offer opened on Monday, February 9, and is expected to close on February 23. The trading of these shares is expected to begin on March 3.
Donaco has made no bones about its intentions when it first announced the filing back in January 30, saying that its plan to raise $100 million in equity financing through this entitlement offer would go dotards the acquisition of the Star Vegas Resort and Club casino property in Poipet, Cambodia. That transaction is expected to be completed in April.