Paradise (034230) Q3 2024 earnings summary

Executive summary

• Q3 sales were KRW 268.245bn, down 6.1% YoY; operating profit was KRW 36.205bn, down 36.6% YoY but up 13.1% QoQ.

• Q3 net profit was KRW 19.662bn, down 55.0% YoY; profit attributable to controlling interests was KRW 9.821bn, down 72.1%.

• 9M revenue reached KRW 806.279bn, up from KRW 752.4bn; operating profit was KRW 116.618bn and net profit KRW 74.211bn.

Financial highlights

• Q3 gross profit was KRW 59.807bn, down 24.5% YoY; SG&A rose 6.8% to KRW 23.602bn, and EBITDA was KRW 55.727bn, down 27.7%.

• 9M gross profit was ₩194.5bn vs ₩200.7bn YoY; selling and administrative expenses were ₩77.9bn vs ₩69.7bn.

• 9M net income attributable to owners was ₩50.3bn vs ₩71.7bn; non-controlling interests accounted for ₩23.9bn of 2024 net income.

Segment performance

• Q3 casino sales were KRW 84.379bn, down 27.1% YoY; integrated-resort sales rose 10.5% to KRW 146.547bn, while hotel sales were KRW 29.687bn, down 4.0%.

• Separate operations recorded Q3 sales of KRW 91.433bn, down 24.9% YoY, and operating profit of KRW 1.531bn; net profit was a KRW 5.204bn loss.

• P-City operating profit rose 9.0% to KRW 27.071bn and net profit rose 17.0% to KRW 18.219bn; operating margin was 18.5%.

• Busan hotel sales fell 3.0% to KRW 28.422bn; operating profit rose 5.8% to KRW 7.359bn and net profit rose 13.6% to KRW 8.109bn.

• P-City hotel occupancy was 84.6% with ADR of KRW 438,000; Busan hotel occupancy was 84.6% with ADR of KRW 361,000.