Kangwon Land Inc, operator of Kangwon Land (pictured) – a resort with the only casino in South Korea open to locals – saw its first-quarter net profit decline by 8.5 percent year-on-year, to KRW92.9 billion (US$68.1 million). But judged sequentially, first-quarter 2024 net profit rose 26.0 percent from the KRW73.7 billion in the final quarter of 2023.
That is according to the firm’s unaudited financial results filed to the Korea Exchange, and information on the company’s website.
Kangwon Land Inc’s first-quarter gaming sales were KRW316.2 billion, mostly from a combination of mass-market table play and slot machines. The tally was up 3.3 percent year-on-year and 10.7 percent sequentially. The gaming sales of the reporting quarter represented 85.8 percent of the firm’s overall sales, the latter being KRW368.4 billion.
Kangwon Land Inc’s first-quarter non-gaming sales reached KRW52.2 billion, flat from a year ago, but up by 31 percent from the previous quarter. The non-gaming sales in the reporting quarter mainly came from the firm’s hotel operation, plus condominium and skiing business.
The firm’s first-quarter operating profit was KRW75.9 billion, up by 8.9 percent year-on-year, and up 95.8 percent sequentially.
In its Monday update, Kangwon Land Inc also noted it has KRW116.8 billion budgeted for capital expenditure in 2024, which covers investment in resort attractions and other operational enhancements.
Out of that sum, the company said it would spend KRW81.9 billion on “operating investment”, including “casino floor expansion, resort facility renovation and improvements, gaming equipment”.
A figure of KRW26.6 billion from the 2024 capital spending pot will go on a “water treatment facility and employee dormitories” at the site in an upland former mining district.
Kangwon Land Inc announced last month a KRW2.5-trillion new phase for its property, which will triple the size of its casino space by 2032.
According to the plan, the resort’s gaming space would expand to 49,500 square metres (532,814 sq. feet) compared to 15,486 sq. ms currently. The new phase also includes a hotel expansion plan with KRW270 billion to be invested out of the total KRW2.5 trillion; a new villa with swimming pool involving KRW30 billion of investment; and other facilities costing KRW280 billion.
