Kangwon Land (035250) Q3 2024 earnings summary

Executive summary

• Q3 separate-basis sales reached W375.5bn, up 0.6% YoY; operating profit was W93.0bn and net profit W92.0bn. Net profit rose 24.3% YoY, supported by higher financial profit.

• 9M consolidated revenue rose to ₩1,082.2bn from ₩1,063.2bn; operating income was nearly flat at ₩243.1bn, while net income attributable to owners increased to ₩344.7bn from ₩267.2bn.

• Casino operations contributed ₩942.0bn, or 85.41%, of 9M revenue.

Financial highlights

• Q3 consolidated revenue was ₩375.916bn versus ₩373.960bn YoY; operating income was ₩88.025bn versus ₩91.784bn, and net income was ₩90.878bn versus ₩74.128bn.

• Q3 separate-basis gaming revenue was W320.4bn and non-gaming revenue W55.1bn; gross profit was W125.2bn and operating profit W93.0bn.

• 9M consolidated gross profit was ₩740.1bn versus ₩725.8bn; basic and diluted EPS were ₩1,700 versus ₩1,318.

• 9M other income included ₩75.4bn in VAT and other refunds; total other income was ₩78.6bn versus ₩4.7bn YoY.

• Q3 separate-basis financial profit increased to W27.4bn from W7.3bn, reflecting higher disposal gains on financial assets and fair-value gains.

Segment performance

• Q3 gaming sales were W320.4bn, up 0.1% YoY; mass tables declined 2.8%, membership club rose 13.2%, and slot machines rose 2.4%.

• Q3 non-gaming sales reached W55.1bn, up 3.3%; Water World rose 9.4% and ski 31.8%, while hotel and golf sales declined 0.6% and 2.0%.

• Non-gaming accounted for 14.7% of Q3 sales versus 14.3% in 3Q23; casino visitors totaled 646,892, up 0.7% YoY.

• 9M hotel revenue was ₩77.7bn, condo ₩27.0bn, golf ₩15.1bn, ski ₩7.6bn and water park ₩11.2bn.