Kangwon Land’s strategic expansion as it announces Q1 24 performance
Kangwon Land Inc., the exclusive operator of the only casino resort in South Korea that permits local citizens, has released its unaudited financial results for the first quarter of 2024. Despite a year-on-year decline of 8.5 percent in net profit, the company has shown resilience with a sequential increase of 26.0 percent from the final quarter of 2023, bringing the net profit to KRW92.9 billion (US$68.1 million).
Key Takeaways
Milestones
Net Profit
Year-on-year decline of 8.5%, sequential increase of 26.0%, net profit of KRW92.9 billion (US$68.1 million)
Gaming Sales
Year-on-year increase of 3.3%, sequential increase of 10.7%, totaling KRW316.2 billion (85.8% of overall sales)
Non-Gaming Sales
Steady from previous year, 31% increase from previous quarter, totaling KRW52.2 billion
Operating Profit
Year-on-year increase of 8.9%, sequential increase of 95.8%, totalling KRW75.9 billion
KRW26.6 billion for water treatment facility, employee dormitories
Future Expansion Plan
Unveiled KRW2.5 trillion new phase for property by 2032, tripling casino space, hotel expansion, new villa, and facilities
Source: SiGMA
The company’s gaming sales, primarily driven by mass-market table play and slot machines, have shown a promising increase. The first quarter of 2024 saw gaming sales rise to KRW316.2 billion, a 3.3 percent increase year-on-year and a 10.7 percent increase sequentially. These gaming sales accounted for a significant 85.8 percent of the company’s overall sales, which totaled KRW368.4 billion.
In addition to its gaming operations, Kangwon Land Inc. also reported non-gaming sales from its hotel, condominium, and skiing businesses. These non-gaming sales reached KRW52.2 billion, remaining steady from the previous year but showing a substantial 31 percent increase from the previous quarter.
The company’s operating profit for the first quarter was KRW75.9 billion, marking an 8.9 percent increase year-on-year and a remarkable 95.8 percent increase sequentially. This robust performance demonstrates the company’s ability to navigate the challenging business environment and deliver solid results.
Looking ahead, Kangwon Land Inc. has earmarked KRW116.8 billion for capital expenditure in 2024, aimed at enhancing resort attractions and other operational aspects. Of this budget, KRW81.9 billion is allocated for operating investment, including casino floor expansion, resort facility renovation and improvements, and gaming equipment. An additional KRW26.6 billion is set aside for the development of a water treatment facility and employee dormitories.
In a recent announcement, Kangwon Land Inc. released a KRW2.5-trillion new phase for its property, which will triple the size of its casino space by 2032. The expansion plan includes a significant increase in gaming space, a hotel expansion, a new villa with a swimming pool, and other facilities. This ambitious plan underscores the company’s commitment to growth and its strategic vision for the future.
Kangwon Land Inc.’s first-quarter performance in 2024 reflects a resilient and robust business model. With strategic investments and expansion plans in place, the company is well-positioned to navigate the future and continue delivering value to its stakeholders.
