Grand Korea Leisure (A114090) Q4 2024 earnings summary

Executive summary

• Operates three foreigner-only casinos in Seoul and Busan, focusing on attracting overseas tourists, especially from Japan and Greater China.

• 2024 saw a 0.1% decrease in consolidated revenue to KRW 396.4 billion, with net income down 24.6% to KRW 33.1 billion year-over-year.

• Maintains a strong financial position with a debt ratio of 49.0% and a current ratio of 221.2% at year-end.

• Dividend policy resumed with both interim and year-end dividends, totaling a 53% payout ratio for 2024.

Financial highlights

• Consolidated revenue: KRW 396.4 billion (down 0.1% YoY); operating income: KRW 38.3 billion (down 24.9% YoY); net income: KRW 33.1 billion (down 24.6% YoY).

• Casino revenue accounted for 99% of sales; exchange revenue 1%.

• Gross margin: KRW 71.0 billion (down 11.4% YoY); SG&A expenses increased 12.3% YoY.

• EPS: KRW 534 (down from KRW 709 in 2023).

• Cash and cash equivalents at year-end: KRW 168.5 billion.

Outlook and guidance

• Casino visitor numbers rose 33% YoY to 1.05 million, nearing pre-pandemic levels.

• Management expects continued recovery in foreign tourist inflows and plans to enhance digital marketing and customer segmentation.

• No new business lines or major expansions planned, but ongoing feasibility reviews for future growth.