Paradise (034230) Q2 2024 earnings summary

Executive summary

• Q2 revenue was KRW273,264.222m versus KRW275,285.230m YoY; operating income fell 41.7% to KRW32,009.063m and net income fell 52.8% to KRW17,568.153m.

• H1 revenue was KRW538.034bn and operating income KRW80.413bn, both above H1 2023; net income was KRW54.549bn versus KRW46.656bn.

Financial highlights

• Q2 gross profit fell 23.3% YoY to KRW66.0bn; cost of sales rose 9.5% and SG&A rose 9.2% to KRW34.0bn.

• Q2 EBITDA was KRW51.9bn, down 30.8% YoY; controlling-interest net profit was KRW14.5bn, down 50.5% YoY and 43.9% QoQ.

• H1 consolidated net income attributable to owners was KRW40.488bn; non-controlling interests contributed KRW14.061bn.

Segment performance

• Q2 casino revenue fell 16.7% YoY to KRW111.959bn; standalone casino operations cited strong Japan VIP and Mass performance alongside higher VIP customer-related comp costs.

• Paradise City sales rose 20.1% YoY to KRW131.4bn; casino sales increased 24.7%, hotel sales 5.8%, while operating profit fell 16.6% to KRW14.2bn.

• Paradise Hotel Busan sales fell 4.0% YoY to KRW25.4bn and operating profit declined 26.3% to KRW3.1bn; sales grew 9.3% QoQ.

• Paradise City Q2 hotel occupancy was 79.9% versus 75.6% YoY; average room rate was KRW358,000 versus KRW367,000.