[Click eStock] "Lotte Tour Development, Casino Sales Significantly Grow... Area of Opportunity"

On the 4th, IBK Investment & Securities analyzed that Lotte Tour Development's casino revenue is showing a significant growth trend, indicating that it has currently entered an area of opportunity.

Nam Seong-hyun, a researcher at IBK Investment & Securities, stated in a report on the same day, "The growth of Lotte Tour Development's casino division is continuing rapidly," and added, "This trend is expected to persist in the future, so it is judged that attention should be paid to Lotte Tour Development."

The reasons for expecting growth in the casino division include ▲an increase in the number of visitors due to expanded flight frequencies ▲an increase in customer base outside of China ▲and the possession of a large number of rooms, making customer attraction activities relatively easier to conduct.

He said, "Casino revenue in January was 23.9 billion KRW, achieving a significant growth of 267.3% compared to the same month last year," and added, "In December last year, the total number of international flights to Jeju Island was 123, but in January this year, it is increasing to 135 flights. If it expands to 189 flights by the end of this year, the number of foreign visitors is also rapidly increasing, which is positive."

He further estimated that Lotte Tour Development's casino revenue this year will increase by 76% compared to the previous year to about 270 billion KRW, with operating profit estimated at about 94 billion KRW.

He also highly evaluated the growth potential of the hotel division. The reasons include ▲the proportion of Chinese customers is still low ▲expected results from efforts to expand overseas sales networks (MICE demand) ▲domestic demand remains solid ▲and effects expected from a decrease in supply volume.

He said, "In January this year, the number of hotel rooms in Jeju City was 12,560, a 1.6% decrease, limiting hotel supply on Jeju Island, and the volume is rather decreasing, making the business environment more positive," and predicted, "In the case of Lotte Tour Development, the increase in customer base linked to the casino is continuing, so OCC is expected to rise faster compared to competitors in the future."