Securities firms have projected that Kangwon Land's operating profit for the third quarter of this year will see a double-digit decline compared to the same period last year. The primary factors cited are reduced lodging capacity due to room renovations and a decrease in casino visitors.
In the field, the prolonged economic downturn, a decline in general floor usage, and disappointment among some slot machine customers are also being discussed as burdens on profitability. With follow-up personnel changes expected following the appointments made after CEO Kim Do-kyun's inauguration, attention is focused on whether this organizational reform will lead to improvements in customer experience and financial performance.
According to an analysis report released by iM Securities on the 24th, Kangwon Land's consolidated revenue for the third quarter is estimated at 378.4 billion KRW, with an operating profit of 64.2 billion KRW. These figures represent a 1% and 12% decrease, respectively, compared to the same period last year.
The operating profit estimate is 3 billion KRW, or about 4.5%, lower than the market consensus of 67.2 billion KRW. This is a brokerage firm's estimate and is distinct from Kangwon Land's finalized earnings.
The report analyzed that room construction likely impacted both summer peak-season lodging demand and casino operations. It is estimated that 757 rooms, accounting for 41% of the total, were undergoing renovations, making it difficult to fully accommodate demand.
Third-quarter casino visitors were estimated at approximately 630,000, with a drop amount of about 1.5 trillion KRW, both estimated to have decreased by 4% compared to the same period last year. The drop amount, an indicator of the funds customers input for gaming, differs from actual casino revenue.
Reflecting these operational impacts, iM Securities adjusted its target stock price down by 14% to 18,000 KRW while maintaining a 'Buy' rating.
Meanwhile, Kangwon Land announced the reassignment of 12 department head-level officials on the 23rd. These changes will take effect on the 26th.
Kim Mi-young, Head of Casino Policy, will concurrently serve as Acting Head of the Casino Division; Song Myeong-o, Head of Marketing Planning, as Acting Head of the Tourism Marketing Division; and Yang Hyun-mo, Head of ESG Mutual Growth, as Acting Head of the ESG Mutual Growth Division.
Kim Nam-kyun has been appointed as Head of the AI Digital Innovation Office, Jeon Jun-ho as Head of the Shared Growth Office, and Park Chun-bae as Team Leader of the K-HIT Future Strategy Team. Jeon Jun-ho will also serve as the Machine Development Team Leader.
Following these department-level reassignments, it is expected that follow-up team leader-level appointments will take place within the end of this month. Specific targets and schedules remain unclear.
Large-scale facility improvements are investments for long-term competitiveness, but customer evaluations continue even during construction. Communicating inconvenient traffic flows, providing alternative services, and ensuring customer-preferred games and adequate rest environments are tasks that cannot be postponed until after completion.