Grand Korea Leisure (A114090) Q2 2024 earnings summary

Executive summary

• Operates three foreigner-only casinos in Seoul and Busan, focusing on attracting overseas tourists, mainly from Japan and Greater China, with 24/7 operations and diversified marketing strategies.

• 2024 H1 revenue was 196.8 billion KRW, down 6.0% year-over-year; operating profit and net profit fell 29.2% and 28.7%, respectively.

• The company resumed interim dividends in 2024 after a pandemic-induced pause, reflecting improved financial stability.

Financial highlights

• H1 2024 revenue: 196.8 billion KRW (down 6.0% YoY); operating profit: 27.1 billion KRW (down 29.2% YoY); net profit: 21.5 billion KRW (down 28.7% YoY).

• Total assets at June 2024: 605.9 billion KRW, down 5.2% from December 2023.

• Cash and equivalents: 185.9 billion KRW; equity: 411.6 billion KRW; liabilities: 194.4 billion KRW.

• Basic EPS for H1 2024: 348 KRW.

Outlook and guidance

• The domestic casino market is recovering post-pandemic, with foreign tourist numbers rebounding and industry revenue nearing pre-COVID levels.

• The company expects gradual improvement in earnings as international travel normalizes, but notes ongoing uncertainty due to global economic and regulatory factors.