Dividend Payout Ratio Set at 61.4%, Dividend per Share Set at 350 Won
Final Decision at Board Meeting on 29th
Expansion of Electronic Table Multigame Operations and Casino Gaming Floors
Kangwon Land has successfully returned to profitability after two years, overcoming the COVID-19 pandemic. Accordingly, it plans to set the highest-ever dividend per share to return value to shareholders and expand services for customer convenience to boost sales.
Kangwon Land announced on the 20th that it will finalize a dividend per share of 350 won, representing the highest-ever dividend payout ratio of 61.4%, at the shareholders' meeting scheduled for the 29th. Last year, Kangwon Land posted a net profit of 115.6 billion won, marking a return to profitability.
Sales and visitor numbers in Kangwon Land's casino and resort sectors have both been on the rise in January and February this year. The casino recorded an average daily visitor count of 7,300 during the peak winter season of January and February. This figure represents an 82% increase compared to the same period last year and a 17% rise compared to the average of the previous quarter, Q4 of last year. Sales are also expected to continue their positive trend compared to both the previous year and quarter.
Resort sales increased by 10% compared to the same period in 2019, surpassing pre-pandemic levels. This is attributed to higher resort occupancy rates and increased visitor numbers, with the cumulative room occupancy rate for January and February this year reaching 77.3%, exceeding the 71.5% occupancy rate during the same period in 2019.
In line with these trends, Kangwon Land will begin operating electronic table multi-games from April to increase sales. Typically, one electronic table terminal (seat) allows only one game, but with the introduction of multi-games, customers can choose and participate in 2 to 3 preferred games such as Baccarat, Blackjack, Roulette, and Sic Bo on a single terminal. As the number of game rounds increases, sales are expected to rise, and customers will benefit from enhanced convenience by not having to leave their seats when switching games.
Services aimed at improving customer convenience, such as expanding the casino floor area, will also be strengthened. Kangwon Land is currently working on design plans for remodeling construction. Once the design is completed in August, preparations including bidding will take place, with construction scheduled to begin by the end of this year and be completed next year. Upon completion of this expansion, the space previously used as a restaurant will be converted into casino floor area, increasing Kangwon Land's casino floor from the current 14,053㎡ to 15,486㎡, an approximately 10% increase.
Until now, the average area per gaming machine at Kangwon Land has been about 60% of that at other domestic casinos, which has been criticized for causing customer inconvenience due to the cramped space.
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