On the 10th, Kiwoom Securities analyzed that Lotte Tour Development is expected to show balanced performance improvements across all sectors in the second quarter.
Namsoo Lee, a researcher at Kiwoom Securities, stated in a report on the same day, "Lotte Tour Development's second-quarter sales are expected to reach 112.2 billion KRW, a 45.8% increase compared to the same period last year, and operating profit is expected to turn positive to 10.1 billion KRW, in line with consensus." He added, "Although there was a decline in hold rate compared to the previous quarter in terms of sales by sector, the casino performed well due to overall indicator improvements, hotel growth driven by an increase in OCC (Occupancy Rate), and the effect of high-end travel products such as cruises, leading to balanced improvements across all sectors."
Performance improvements are also expected to continue into the third quarter. Researcher Lee explained, "The summer peak season in the third quarter, the Mid-Autumn Festival and National Day holidays in China in September and October, and Japan's Obon Festival next month mean that key customers' holidays increase compared to the first half of the year," adding, "This is an opportunity to further strengthen performance in the third quarter."
He continued, "Annual sales for this year are projected to increase by 51.8% year-on-year to 475.9 billion KRW, with operating profit turning positive to 64.7 billion KRW," and forecasted, "Sales and operating profit are expected to improve simultaneously as the year progresses into the second half."
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