Lotte Tourism Development Expects Increase in Casino Revenue

[Asia Economy Reporter Hyungsoo Park] Lotte Tour Development's casino sales are expected to steadily increase.

Hana Financial Investment forecasted on the 16th that Lotte Tour Development's quarterly sales will surpass 50 billion KRW in the fourth quarter of this year.

Lee Ki-hoon, a researcher at Hana Financial Investment, explained, "Recently, by selling 11,000 rooms through home shopping, the travel demand concentrated in Jeju Island is quickly settling into the market." However, he predicted, "As Jeju Island applies social distancing level 4 due to the impact of COVID-19, the expected breakeven point breakthrough will be delayed compared to the original schedule."

The researcher emphasized, "Even in a limited casino operating environment, daily sales reached 200 million KRW," adding, "With the hard jacket settling in, surpassing 300 million KRW per day is just a matter of time."

He analyzed, "In the second quarter, sales were 24.5 billion KRW, and operating losses were 29.6 billion KRW," noting, "Sales increased by 3915% compared to the same period last year, but operating losses continued."

The researcher added, "Sales in the hotel sector were 19.8 billion KRW, an 80% increase from the previous quarter," and "Room sales in the third quarter are expected to be at least 90,000 rooms."

He explained, "Due to the resurgence impact, including Jeju Island being elevated to social distancing level 4 starting from the 18th, Tower 2 will also gradually open from September."

He continued, "Conservatively assuming casino net sales of about 5 billion KRW per month," and "estimating that the hard jacket is settling quickly

there is sufficient possibility to achieve 8 to 10 billion KRW within the year," he said.

This content was produced with the assistance of AI translation services.