Paradise (034230) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was KRW 284,461mn (+4.1% YoY), operating profit KRW 42.9bn (+33.9%) and net profit KRW 32,352mn (+84.2%).

• H1 revenue reached KRW 567,766mn, operating profit KRW 100,127mn and net profit KRW 75,456mn, all above H1 2024.

Financial highlights

• Q2 EBITDA was KRW 61,602mn (+18.7% YoY); SG&A fell 18.4% to KRW 27,751mn and operating margin rose to 15.1% from 11.7%.

• Q2 net profit attributable to controlling interests was KRW 20,879mn, up 43.5% YoY.

• H1 sales were KRW 567,766mn versus KRW 538,034mn; operating profit was KRW 100,127mn versus KRW 80,413mn.

• H1 operating cash flow was KRW 93.8bn versus KRW 124.8bn; cash and equivalents ended June at KRW 287.9bn, down from KRW 577.7bn at FY2024-end.

Segment performance

• Consolidated casino revenue set a quarterly record at KRW 229.8bn (+7.1% YoY), on drop of KRW 1.835tn (+7.7%) and an 11.8% hold rate; Japanese VIP and mass drop also reached a quarterly record, up 10.6%.

• P-City casino revenue rose 25.0% to KRW 128,196mn on 19.5% drop growth and a 0.5pp higher hold rate; operating profit increased 115.6% to KRW 30,566mn.

• H1 resort revenue was KRW 291.5bn, 51.3% of sales, versus KRW 263.7bn; casino revenue was KRW 216.3bn versus KRW 214.2bn.

• Separated operations revenue fell 8.5% to KRW 104,328mn and operating profit fell 41.3% to KRW 8,198mn; Busan Casino revenue declined 35.9%.

• Hotel Busan revenue rose 1.6% to KRW 25,814mn and operating profit rose 12.5% to KRW 3,447mn; Spa Dogo revenue increased 69.8% to KRW 3,552mn following Cabin Park’s opening.