[Click eStock] "Lotte Gwangwang Gaebal Expected to Maintain Growth Trend in 2025"

Daishin Securities forecasted on the 18th that Lotte Tour Development will continue its growth trend in 2025.

Im Su-jin, a researcher at Daishin Securities, stated in a report on the same day, “While Lotte Tour Development continues to deliver better-than-expected performance, the stock price has shown somewhat sluggish movement due to the weak casino industry conditions and exclusion from the KOSPI 200 index. However, the recent successful refinancing is expected to reduce financial costs by about 20%, providing a positive momentum.”

Researcher Im added, “The number of cities connected to Jeju Island by air routes is expected to increase rapidly in 2025. According to Lotte Tour Development, the number of connected cities, which was 16 in 2024, is planned to expand to 45 by the end of 2025 and 55 by the end of 2026. In particular, in the first quarter of 2025, direct flight routes to economically strong Chinese cities such as Changchun, Shenzhen, Guangzhou, Xi’an, and Dalian will be added, which is expected to result in significant performance growth.”

He estimated Lotte Tour Development’s consolidated sales for the fourth quarter of this year at 122.7 billion KRW and operating profit at 12.6 billion KRW, representing a 32% increase and a turnaround to profitability compared to the same period last year, respectively.

He said, “Despite the decrease in the number of direct flight routes during the off-season for tourism in Jeju Island in the fourth quarter, the high number of visitors and drop amounts were maintained thanks to the National Day holiday in October and the baccarat tournament in November. The drop amount for the fourth quarter is expected to be about 150 billion KRW, and the casino net sales are conservatively estimated at 75.3 billion KRW assuming a hold rate of 17%.”

Additionally, he forecasted, “Lotte Tour Development will continue its strong growth in 2025 through the expansion of connected cities and strengthening of VIP operations. With the recent refinancing success leading to financial cost reductions, stable performance improvements are expected in the mid to long term.”