Paradise (034230) Q2 2026 earnings summary

Executive summary

• Q2 revenue rose 11.8% YoY to KRW 318.1bn, while operating profit declined 17.0% to KRW 35.6bn as operating expenses increased.

• Record casino demand and Hyatt consolidation supported sales; expanded hotel operations and higher labor, comps and advertising costs pressured profitability.

• H1 revenue rose to KRW 612.1bn from KRW 567.8bn, while operating profit fell to KRW 72.9bn from KRW 100.1bn and net profit to KRW 39.7bn from KRW 75.5bn.

Financial highlights

• Q2 gross profit was KRW 73.5bn, up 4.1% YoY; gross margin was 23.1%, down 1.7 ppts. SG&A rose 36.9% to KRW 38.0bn.

• Q2 EBITDA fell 8.0% to KRW 56.7bn and net profit fell 35.0% to KRW 21.0bn; controlling-interest net profit was KRW 15.8bn, down 24.4%.

• H1 gross profit was KRW 141.7bn vs KRW 148.6bn; cost of sales rose to KRW 470.3bn from KRW 419.2bn.

• H1 net income attributable to parent owners was KRW 32.3bn vs KRW 52.0bn; basic EPS was KRW 368 vs KRW 602.

Outlook and guidance

• Jangchung hotel development had KRW 324.2bn of planned capital expenditure remaining from a KRW 354.5bn contracted outlay at June 30.

• All 4.87m treasury shares are intended for cancellation by the statutory deadline; timing, amount and method remain subject to board approval.

• IFRS 18 adoption is scheduled for 2027; management expects no net-income impact but anticipates changes to operating-profit presentation and calculation.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projections.