Paradise (034230) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was KRW 293.966bn, up 3.8% YoY; operating income was KRW 37.305bn, down 34.9%.

• Net income was KRW 18.667bn, versus KRW 43.104bn; profit attributable to owners was KRW 16.468bn, versus KRW 31.134bn.

Financial highlights

• Gross profit was KRW 68.199bn, down 12.5% YoY; SG&A rose 49.2% to KRW 30.895bn, and operating margin fell to 12.7% from 20.2%.

• EBITDA was KRW 57.529bn, down 24.4% YoY; cost of sales rose 10.0% to KRW 225.767bn, outpacing revenue growth.

• Hyatt consolidation added KRW 6.1bn to revenue and KRW 11bn to operating expenses.

• Operating cash flow was negative KRW 21.323bn, versus positive KRW 41.601bn in Q1 2025; investing cash flow was positive KRW 64.596bn.

Segment performance

• Integrated resort revenue was KRW 145.933bn, up 4.9% YoY; operating profit fell 54.0% to KRW 15.425bn amid higher hotel, marketing and labor costs.

• Casino revenue across four properties was KRW 228.9bn, up 1.4%; drop rose 3.6% to KRW 1.7559tn, while hold rate fell 0.4 percentage points to 12.2%.

• Casino mass drop grew 16.8% YoY; at P-City, total drop rose 4.6% as China VIP drop fell 37% and mass drop increased 25.4%.

• Hotel Busan revenue rose 14.1% to KRW 24.176bn; occupancy was 75.6%, up 8.5 percentage points, and operating profit rose 164.4% to KRW 2.694bn.

• Paradise City hotel occupancy was 77.7% with an average room rate of KRW 437,000; Busan hotel average room rate was KRW 303,000.