Paradise (034230) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue was KRW 283,305m, operating income KRW 57,276m and net income KRW 43,104m, up YoY; KRW 31,134m was attributable to owners.

• Casino and resort growth supported results while hotel revenue declined; a KRW 550bn post-quarter borrowing commitment will fund a Jangchung-dong hotel project.

Financial highlights

• Gross profit was KRW 77,978m versus KRW 68,673m; EBITDA was KRW 76.0bn, up 11.7% YoY.

• Profit before tax was KRW 49,598m versus KRW 40,970m; tax expense was KRW 6,494m versus KRW 3,990m.

• Operating cash flow was KRW 41,601m versus KRW 50,068m; consolidated cash and equivalents were KRW 461,049m at quarter-end, down from KRW 577,696m at year-end 2024.

Segment performance

• Casino revenue was KRW 115,553m, up 13.0% YoY despite a 4.8% drop decline, supported by a 2.0 percentage-point hold-rate increase.

• Integrated resort revenue was KRW 139,146m, up 5.2%; P-City casino revenue rose 7.3% on KRW 876.3bn drop, up 0.7%, and an 11.6% hold rate, up 0.5 percentage points.

• Casino operations recorded quarterly revenue of KRW 223.4bn, a record, on KRW 1,694.2bn total drop, down 2.0%; mass drop reached a quarterly record, up 1.0%.

• Hotel revenue was KRW 24,277m versus KRW 26,276m. P-City occupancy fell to 75.8% from 78.6%, while ADR rose to KRW 429,000 from KRW 371,000.

• Busan hotel revenue fell 8.8% to KRW 21.2bn; occupancy was 67.1% versus 72.2%, and operating profit fell to KRW 1.0bn from KRW 3.0bn.