[Click eStock] "Lotte Gwangwang Gaebal, Q4 Sales Expected to Surpass 50 Billion Won"

Despite Limited Conditions, 10,000 Visitors Monthly Consistently Visit Casino
Gradually Reducing Deficit Margin

[Asia Economy Reporter Gong Byung-sun] Lotte Tour Development has reduced its deficit in the second quarter of this year. With travel and casino demand rapidly increasing, sales in the fourth quarter are expected to surpass 50 billion KRW for the first time on a quarterly basis.

According to Hana Financial Investment on the 17th, Lotte Tour Development's second-quarter sales increased by 3,915% year-on-year to 24.5 billion KRW, and operating profit was 29.6 billion KRW, continuing to post a loss during the same period. However, the deficit narrowed compared to the operating loss of 37.8 billion KRW in the first quarter of this year.

Travel demand influenced the performance. Recently, the company sold 11,000 rooms through home shopping, quickly establishing itself in the market due to travel demand concentrated in Jeju Island. It is estimated that the occupancy rate (OCC) reached around 90%, nearly full, through July and August. Accordingly, hotel division sales in the second quarter increased by 80% compared to the previous quarter, reaching 19.8 billion KRW.

However, the resurgence of COVID-19 is expected to impact the travel sector again. Lee Ki-hoon, a researcher at Hana Financial Investment, said, "We expected at least 90,000 room sales in the third quarter, but due to the resurgence of COVID-19, social distancing level 4 will be applied from the 18th," adding, "The turnaround to profitability at the break-even point (BEP) is likely to be delayed further into the third quarter."

Casino sales showed favorable results despite limited conditions. Approximately 300 to 500 people visit daily, and monthly visitors approach about 10,000. Accordingly, casino sales in the second quarter, which started operations on June 11, recorded 200 million KRW per day. If hard jackpots stabilize, daily sales are expected to increase up to 300 million KRW.

Therefore, Hana Financial Investment predicted that Lotte Tour Development's deficit will gradually decrease. They forecast a deficit of around 12 billion KRW in the third quarter and about 5 billion KRW in the fourth quarter. Sales in the fourth quarter are expected to exceed 50 billion KRW for the first time on a quarterly basis.

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