Kangwon Land (035250) Q1 2025 earnings summary

Executive summary

• Separate-basis sales were W365.8bn, down 0.6% YoY; operating profit rose 2.5% to W77.7bn, while net profit fell 16.9% to W78.0bn.

• Consolidated revenue was KRW366.3bn; operating income was KRW74.3bn and net income KRW74.6bn, versus KRW92.8bn a year earlier.

• Casino revenue remained broadly steady; lower fair-value investment gains and weaker operating cash flow weighed on results.

• Separate-basis results were preliminary and unaudited; audit outcomes could change reported information.

Financial highlights

• Separate-basis gross profit was W105.7bn, down 0.9% YoY; SG&A fell 9.2% to W28.0bn, supporting higher operating profit.

• Consolidated gross profit was KRW103.0bn versus KRW106.8bn YoY; SG&A was KRW28.7bn versus KRW31.0bn.

• Separate-basis income before tax declined 17.8% to W101.2bn; corporate tax fell 20.6% to W23.2bn.

• Consolidated finance income was KRW24.0bn versus KRW62.8bn, including fair-value gains of KRW16.1bn versus KRW53.6bn.

• Consolidated net income attributable to owners was KRW74.6bn versus KRW92.8bn; basic EPS was KRW372 versus KRW458.

Segment performance

• Separate-basis gaming sales were W316.8bn, up 0.2% YoY; non-gaming sales were W49.0bn, down 5.7%.

• Consolidated casino revenue was KRW316.9bn, 84.93% of revenue, versus KRW316.2bn and 84.35% in Q1 2024; casino visitors increased 5.5%.

• Non-gaming sales were 13.4% of total, down 0.7 percentage points YoY; ski revenue rose 7.5% to W13.8bn, while hotel revenue fell 12.2% to W22.7bn.

• Hotel revenue was KRW22.7bn versus KRW25.9bn YoY; condo revenue was KRW11.2bn versus KRW12.1bn, and Water World revenue was KRW1.2bn in both periods.

• High1 Partners generated KRW7.0bn revenue; High1 ChooChoo Park recorded a KRW537mn net loss.