Kangwon Land's strategic expansion as it announces Q1 24 performance
Kangwon Land Inc., the exclusive operator of the only 바카라 resort in South Korea that permits local citizens, has released its unaudited financial results for the first quarter of 2024. Despite a year-on-year decline of 8.5 percent in net profit, the company has shown resilience with a sequential increase of 26.0 percent from the final quarter of 2023, bringing the net profit to KRW92.9 billion (US$68.1 million).
| Key Takeaways | Milestones |
|---|---|
| Net Profit | Year-on-year decline of 8.5%, sequential increase of 26.0%, net profit of KRW92.9 billion (US$68.1 million) |
| Gaming Sales | Year-on-year increase of 3.3%, sequential increase of 10.7%, totaling KRW316.2 billion (85.8% of overall sales) |
| Non-Gaming Sales | Steady from previous year, 31% increase from previous quarter, totaling KRW52.2 billion |
| Operating Profit | Year-on-year increase of 8.9%, sequential increase of 95.8%, totalling KRW75.9 billion |
| Capital Expenditure | KRW116.8 billion earmarked for 2024 |
| – Operating Investment | KRW81.9 billion allocated for 바카라 floor expansion, resort renovation, gaming equipment |
| – Infrastructure Development | KRW26.6 billion for water treatment facility, employee dormitories |
| Future Expansion Plan | Unveiled KRW2.5 trillion new phase for property by 2032, tripling 바카라 space, hotel expansion, new villa, and facilities |
The companys gaming sales, primarily driven by mass-market table play and slot machines, have shown a promising increase. The first quarter of 2024 saw gaming sales rise to KRW316.2 billion, a 3.3 percent increase year-on-year and a 10.7 percent increase sequentially. These gaming sales accounted for a significant 85.8 percent of the companys overall sales, which totaled KRW368.4 billion.
In addition to its gaming operations, Kangwon Land Inc. also reported non-gaming sales from its hotel, condominium, and skiing businesses. These non-gaming sales reached KRW52.2 billion, remaining steady from the previous year but showing a substantial 31 percent increase from the previous quarter.
The companys operating profit for the first quarter was KRW75.9 billion, marking an 8.9 percent increase year-on-year and a remarkable 95.8 percent increase sequentially. This robust performance demonstrates the companys ability to navigate the challenging business environment and deliver solid results.
Looking ahead, Kangwon Land Inc. has earmarked KRW116.8 billion for capital expenditure in 2024, aimed at enhancing resort attractions and other operational aspects. Of this budget, KRW81.9 billion is allocated for operating investment, including 바카라 floor expansion, resort facility renovation and improvements, and gaming equipment. An additional KRW26.6 billion is set aside for the development of a water treatment facility and employee dormitories.
In a recent announcement, Kangwon Land Inc. released a KRW2.5-trillion new phase for its property, which will triple the size of its 바카라 space by 2032. The expansion plan includes a significant increase in gaming space, a hotel expansion, a new villa with a swimming pool, and other facilities. This ambitious plan underscores the companys commitment to growth and its strategic vision for the future.
Kangwon Land Inc.’s first-quarter performance in 2024 reflects a resilient and robust business model. With strategic investments and expansion plans in place, the company is well-positioned to navigate the future and continue delivering value to its stakeholders.
