Kangwon Land (035250) Q2 2025 earnings summary

Executive summary

• 2Q25 separate-basis sales rose 6.8% YoY to W360.7bn; operating profit fell 21.2% to W57.9bn and net profit fell 62.2% to W60.6bn.

• 2Q25 consolidated revenue was ₩360.8bn vs ₩338.0bn YoY; operating income was ₩58.5bn vs ₩73.9bn and net income was ₩62.8bn vs ₩161.0bn.

• H1 consolidated revenue rose to ₩727.1bn from ₩706.3bn, while operating income fell to ₩132.8bn from ₩149.7bn and net income to ₩137.4bn from ₩253.8bn.

Financial highlights

• Separate-basis 2Q gross profit was W91.8bn, down 10.9% YoY; COGS and SG&A each rose 14.6% to W268.9bn and W33.9bn, respectively.

• H1 consolidated gross profit was ₩195.6bn vs ₩210.4bn YoY; SG&A rose to ₩62.8bn from ₩60.7bn.

• Prior-year H1 included ₩75.2bn of tax-refund income; other gains totaled ₩76.5bn vs ₩20.2bn in H1 2025, affecting earnings comparisons.

• H1 finance income was ₩67.2bn vs ₩103.5bn, mainly reflecting lower fair-value gains on financial assets of ₩53.6bn vs ₩86.7bn.

Segment performance

• 2Q gaming GGR rose 9.2% YoY to W361.5bn; casino sales increased 8.6% to W331.5bn and table drop rose 9.4% to W1,473.3bn.

• 2Q Membership Club GGR rose 42.8% to W72.9bn; mass tables increased 4.2% to W152.6bn and slots rose 1.8% to W136.0bn.

• 2Q non-gaming sales fell 9.6% to W29.2bn; hotel sales were W19.8bn, down 10.0%, and condo sales were W4.0bn, down 9.5%.

• H1 casino revenue was ₩648.4bn vs ₩621.7bn and accounted for 87.45% of segment sales; hotel, condo, ski, golf and Water World revenues were ₩42.5bn, ₩15.2bn, ₩14.6bn, ₩2.8bn and ₩2.9bn, respectively.