Kangwon Land net income up 24.3% in Q3

The casino operator has posted net income of KRW91.98bn (US$66.5m) for the three months to September 30.

South Korea.- Kangwon Land has shared its financial results for the third quarter of the year. It posted a net income of KRW91.98bn (US$66.5m), up 24.3 per cent in year-on-year terms but down 42.6 per cent compared to the second quarter of the year.

Gaming sales were up 4.9 per cent sequentially but flat in year-on-year terms at KRW320.4bn (US$231.51m). Gross gaming revenue (GGR) rose by 1.2 per cent compared to last year, reaching KRW353.8bn (US$255.69m). KRW161.1bn (US$116.52m) was attributed to mass tables, which saw a decline of 2.8 per cent in year-on-year terms.

GGR from membership club play amounted to KRW47.6bn (US$34.41m), a 13.2 per cent year-on-year increase. GGR from slot machines was KRW145.1bn (US$104.91m), up 2.4 per cent year-on-year.

The casino recorded 646,892 visitors in the third quarter of the year. That’s a rise of 0.7 per cent in year-on-year terms and a rise of 18.4 per cent compared to the second quarter of the year.

Non-gaming sales reached KRW55.1bn (US$39.87m), up 70.7 per cent quarter-on-quarter and up 3.3 per cent compared to the third quarter of 2023. The majority of non-gaming revenue (KRW29.9bn – US$21.62m), came from the hotel sector. Compared to the previous year, hotel sales remained stable but showed a 35.9 per cent increase quarter-on-quarter.

Operating income was up 26.7 per cent sequentially and up 1.3 per cent year-on-year to KRW93.04bn (US$67.26m). Cumulatively, net income was nearly KRW346.09bn (US$250.41m) in the first nine months of the year, up 29.8 per cent year-on-year. Sales amounted to KRW1.08tn (US$781.43m), up 1.8 per cent from a year earlier while operating income reached KRW242.24bn (US$175.18m).

A week ago Kangwon Land announced a Corporate Value-up Plan intended to increase its corporate value. It aims to achieve a shareholder payout ratio of 60 per cent by 2026. To these ends, it intends to increase its dividend payout ratio to at least 50 per cent and introduce a three-year share buy-back programme worth KRW100bn (US$72.9m).

The operator will buy-back up to KRW40bn (US$29.5m) of shares this year. It will follow that with KRW60bn (US$44m) in buy-backs in 2025 and 2026. The casino operator aims to attain a price-to-book (PBR) ratio of 1.2 times by 2026 and achieve 100 per cent compliance with key corporate governance indicators.

In April, Kangwon Land unveiled a KRW2.5tn (US$1.85bn) investment plan dubbed K-HIT Project 1.0. It will triple the size of casino space by 2032. The company aims to enhance the gaming experience for international visitors and align operational standards, including betting restrictions, with global benchmarks.