[Click eStock] "Lotte Gwangwang Gaebal, Growth Linked to Recovery of International Routes"

Hana Securities analyzed on the 17th that Lotte Tour Development is showing growth linked to the recovery of international routes.

Lee Ki-hoon, a researcher at Hana Securities, stated in a report on the same day, “The performance improvement trend continues due to the increase in international routes to Jeju Island,” adding, “The number of flights increased from 123 at the end of last year to 138 at the end of the first quarter, and direct flights to Shenzhen in May, Chongqing in June, Tokyo and Guangzhou in July have resumed, so the number of flights is expected to increase to about 180-190 by the third quarter and about 200 by the end of the year.”

Accordingly, casino sales are also expected to increase in tandem. Although the number of flights in the first quarter of this year increased by only 10% compared to the fourth quarter of last year, casino sales increased by 35%. Since the second half of last year, after restructuring the business to focus on RC (Commission) type operations, a significant increase in hold rate has occurred, and it has remained high at around 14% in April as well.

Researcher Lee Ki-hoon said, “International routes such as those to China continue to expand, and with the hold rate rising, a good trend is emerging with monthly casino sales stably recording 20 billion KRW,” and “The hotel is also expected to improve as the proportion of foreign guests stabilizes at around 60%.”

He analyzed, “Although financial costs remain a burden, from an operational perspective, the record-high first quarter will be the lowest point, and steady upward movement is expected until the end of the year,” adding, “Macau casinos have recently recovered their valuation, and stock prices are rebounding, which is positive.”