Kangwon Land is reportedly on high alert regarding its year-end performance as internal reports suggest that the casino revenue decline seen in the second quarter of this year has continued into the third quarter.
In particular, with casino revenue during the Chuseok holiday falling below expectations, it is reported that management has ordered an all-out effort to recover revenue in the fourth quarter, drawing significant attention to future performance.
According to Kangwon Land's management disclosures and securities analysis reports on the 8th, casino revenue in the third quarter of last year was 333.7 billion KRW, a 4.2% increase compared to the same period the previous year.
However, growth has stalled this year, with first-quarter casino revenue recording 330.4 billion KRW, followed by a 3.5% year-on-year decline to 319.9 billion KRW in the second quarter.
Consolidated revenue, which includes the casino, hotels, and condominiums, also fell from 384.1 billion KRW in Q3 last year, 365.5 billion KRW in Q4, and 378.9 billion KRW in Q1 of this year to 345.6 billion KRW in the second quarter.
Notably, the operating profit for the second quarter of this year dropped to approximately 43.2 billion KRW, a 26.2% decrease from the same period last year, raising concerns not only about revenue decline but also about deteriorating profitability.
Securities firms analyze the poor performance as being driven by a reduction in lodging supply due to hotel and condominium renovations that began in earnest in March, as well as a decrease in visitors and 'drop amounts' (the amount of money exchanged for chips) at general casino floors.
Kiwoom Securities lowered its target price for Kangwon Land to 18,000 KRW in August, citing that the impact of the room renovations had begun to materialize and that performance fell short of market expectations.
Amidst this, concerns have reportedly been raised within Kangwon Land that Q3 casino operating results did not meet expectations.
Unofficial reports from an executive meeting held late last month suggest that management evaluated the Q3 results as sluggish, noting that Chuseok holiday revenue failed to meet targets, and issued an order to focus all resources on recovering casino revenue in the fourth quarter.
However, the official results for the third quarter of this year have not yet been released.
Since the inauguration of new CEO Kim Do-kyun in September, Kangwon Land has been pursuing organizational diagnostics and management innovation.
Nevertheless, with the dual challenges of slowing casino revenue and operational disruptions due to large-scale renovations, expanding customer acquisition and improving profitability have emerged as urgent tasks for the new management team.
Industry experts point out that without substantial efforts to strengthen casino competitiveness—such as efficient operation of popular gaming facilities, improved customer service, and innovation in the operating environment—it will not be easy to achieve a rebound in revenue in the short term.
