13.03 Billion Won in Operating Profit for Five Consecutive Quarters
First-Quarter Revenue Hits All-Time High
Lotte Tour Development reported strong results for the first quarter of this year, driven by the steady performance of its foreigner-only casino.
On May 14, Lotte Tour Development announced that its consolidated operating profit for the first quarter reached 13.025 billion won, up 48.2% compared to the same period last year. The company has remained in the black for five consecutive quarters since the first quarter of last year.
Revenue increased by 14.8% to 121.948 billion won, marking the highest first-quarter figure in the company's history. Overall, this is the second-highest quarterly revenue, following the third quarter of last year (139.149 billion won). However, net loss stood at 23.6 billion won, remaining in the red.
The company explained that all three main business segments?casino, hotel, and travel?performed well, contributing to the improved results. In particular, the casino segment led the rebound with first-quarter net sales (total sales minus agent commissions and other expenses) of 84.545 billion won, up 20.8% from the same period last year, setting a new all-time high. The number of casino visitors also reached a record 109,631 since opening. The drop amount (the total amount exchanged for chips by casino customers) hit a record 482 billion won.
Additionally, the hotel segment (Grand Hyatt Jeju) posted sales of 31.7 billion won, a 21.9% increase year-on-year, while travel business revenue rose 22.3% to 21.9 billion won.
Lotte Tour Development stated, "With a significant increase in the number of casino visitors, both drop amount and net sales are set to reach record highs under a normal hold rate," adding, "There is also a strong possibility that the hotel segment will turn a net profit from the second quarter, benefiting from the golden holiday season."
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