Paradise (034230) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was KRW265.8bn, up 9.9% YoY; operating profit was KRW19.5bn, up 32.1% YoY.

• Casino revenue rose on a higher hold rate and growth in inbound visitors and domestic demand, despite a slight drop-amount decrease.

Financial highlights

• FY2024 sales were KRW1,072.1bn, compared with KRW994.2bn in 2023; integrated resort sales rose to KRW539.3bn from KRW448.7bn.

• FY2024 operating profit was KRW136.1bn versus KRW145.8bn; net profit was KRW104.3bn versus KRW80.2bn.

• Q4 gross profit rose 31.2% YoY to KRW43.6bn; EBITDA increased 10.9% to KRW38.5bn.

• Q4 net profit was KRW30.1bn versus a KRW10.2bn loss a year earlier; net profit attributable to controlling interests was KRW21.4bn versus a KRW9.1bn loss.

Segment performance

• Q4 casino sales rose 11.0% YoY to KRW104.1bn; integrated resort sales increased 11.8% to KRW129.0bn, while hotel sales declined 2.4% to KRW28.7bn.

• Standalone casino and spa operations generated Q4 sales of KRW107.8bn, up 11.2%; operating profit was KRW14.9bn versus KRW7.0bn a year earlier.

• Integrated resort Q4 sales were KRW129.1bn, up 11.9%; casino revenue rose 17.9% to KRW99.7bn, while operating profit fell 25.5% to KRW3.5bn as SG&A increased.

• Paradise Hotel Busan Q4 sales declined 3.0% to KRW26.5bn; operating profit fell 89.0% to KRW243mn, partly reflecting allocated headquarters personnel costs with no consolidated impact.