Kangwon Land (035250) Q3 2025 earnings summary

Executive summary

• Preliminary, unaudited 3Q25 separate sales were W383.7bn, up 2.2% YoY; operating profit fell 22.7% to W71.9bn, while net profit rose 24.1% to W112.3bn.

• Consolidated Q3 revenue was KRW 384.1bn versus KRW 375.9bn; operating income was KRW 72.7bn versus KRW 93.3bn, and net income was KRW 113.1bn versus KRW 90.9bn.

• 9M 2025 consolidated revenue was KRW 1,111.3bn versus KRW 1,082.2bn; operating income was KRW 205.5bn versus KRW 243.1bn and net income was KRW 250.5bn versus KRW 344.7bn.

Financial highlights

• 9M gross profit was KRW 306.4bn versus KRW 336.1bn; profit before tax was KRW 323.5bn versus KRW 428.7bn.

• 9M finance income was KRW 141.1bn versus KRW 131.4bn, including KRW 123.0bn in fair-value gains on financial assets versus KRW 98.9bn.

• In 3Q25 separate results, gross profit was W109.9bn, down 12.3% YoY; COGS rose 9.4% to W273.8bn and SG&A rose 18.0% to W38.0bn.

• 9M operating cash flow was KRW 135.7bn versus KRW 258.0bn; cash and cash equivalents were KRW 162.1bn at quarter-end, down from KRW 244.5bn at FY2024 year-end.

Segment performance

• Casino generated KRW 982.1bn, or 86.68% of 9M revenue, versus KRW 942.0bn and 85.41% in the prior-year period.

• 3Q25 gaming sales were W333.7bn, up 4.2% YoY; non-gaming sales were W50.0bn, down 9.4% YoY but up 71.1% QoQ.

• Q3 gross gaming revenue was W368.5bn, up 4.2% YoY, and drop rose 6.9% to W1,602.6bn; casino visitors totaled 661,196, including 7,103 foreign visitors.

• 3Q25 hotel sales were W26.7bn, condo sales W9.8bn and Water World sales W8.0bn, down 10.7%, 6.7% and 2.4% YoY, respectively.

• 9M resort revenue included Grand Hotel KRW 69.2bn, condos KRW 25.0bn, Water World KRW 10.9bn, ski KRW 15.8bn and golf KRW 7.1bn.