Grand Korea Leisure (A114090) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was KRW 109.9 billion, up 12% year-over-year, with operating income of KRW 20.2 billion and net income of KRW 16.1 billion, representing increases of 46% and 58% respectively compared to Q1 2024.

• The company operates three foreigner-only casinos in Seoul and Busan, with the majority of revenue from table games (91.1%), followed by slot machines (7.7%) and currency exchange (1.2%).

• The business is highly dependent on foreign tourists, especially from Japan and Greater China, and is subject to strict government regulation and taxation.

Financial highlights

• Total assets at March 31, 2025, were KRW 609.6 billion, with liabilities of KRW 193.6 billion and equity of KRW 416.0 billion.

• Cash and cash equivalents stood at KRW 152.4 billion, and the debt ratio improved to 46.5% from 49.0% at year-end 2024.

• Basic earnings per share for Q1 2025 was KRW 260, up from KRW 165 in Q1 2024.

• Operating cash flow was KRW 8.99 billion, with a net decrease in cash of KRW 16.4 billion due to investment and lease payments.

Outlook and guidance

• The domestic foreigner-only casino market is in a recovery phase, with Q1 2025 market sales up 24% sequentially, and industry sales surpassing pre-pandemic levels.

• The company expects continued growth as international tourism rebounds, but remains exposed to fluctuations in foreign visitor numbers and regulatory changes.