Kangwon Land (035250) Q2 2026 earnings summary

Executive summary

• 2Q26 sales were ₩345.6bn, down 4.2% YoY; operating profit fell 26.2% to ₩43.2bn, while net profit rose 59.8% to ₩100.3bn.

• H1 2026 revenue was ₩724.6bn versus ₩727.1bn YoY; net income rose to ₩149.5bn from ₩137.4bn, while operating income fell to ₩112.7bn from ₩132.8bn.

• Higher financial profit, including fair-value gains on financial assets, supported net profit despite weaker operating results.

Financial highlights

• 2Q26 sales fell 8.8% QoQ; COGS was ₩268.5bn, up 0.1% YoY, gross profit fell 16.7% to ₩77.1bn, and SG&A was ₩33.9bn, down 0.4%.

• 2Q26 operating profit was down 37.3% QoQ; net profit rose 153.0% QoQ.

• H1 gross profit was ₩181.1bn versus ₩195.6bn; basic and diluted EPS were ₩753 versus ₩686 YoY.

• H1 finance income was ₩103.0bn, including ₩95.7bn of fair-value gains; finance costs included ₩11.7bn of fair-value losses.

• H1 operating cash flow was a ₩28.9bn outflow versus a ₩19.3bn inflow YoY; investing and financing cash outflows were ₩262.4bn and ₩222.8bn.

Segment performance

• 2Q26 gaming sales were ₩319.9bn, down 3.5% YoY; gross gaming revenue fell 3.4% and casino sales declined 3.5%.

• 2Q26 non-gaming sales were ₩25.7bn, down 12.3% YoY and 47.1% QoQ; hotel and condo revenue declined 14.7% YoY amid room renovations.

• H1 casino revenue was ₩650.2bn, or 87.92% of sales, versus ₩648.4bn and 87.45% in H1 2025; hotel revenue was ₩40.8bn versus ₩42.5bn.

• H1 sales included ₩14.3bn from condos, ₩13.5bn from the water park, ₩2.9bn from golf, ₩2.3bn from skiing and ₩15.0bn from facility services.