[Click eStock] "Lotte Tour Development, Record-Breaking Q3 Performance... Entering Growth Phase"

IBK Investment & Securities analyzed on the 2nd that Lotte Tour Development has entered a growth phase by recording record-breaking performance in the third quarter of this year.

Nam Seong-hyun, a researcher at IBK Investment & Securities, stated in a report on the same day, “Operating revenue in the third quarter reached 139 billion KRW, a 44% increase compared to the same period last year, and operating profit surged by 6406% to 22 billion KRW compared to the same period last year. This performance growth was mainly driven by an increase in visitors and drop amounts due to the recovery of Chinese tourists, expansion of occupancy rates due to the peak season of the hotel division and an increase in casino customers, and increased sales of cruise charters and European premium products in the travel division,” he analyzed.

He explained, “The drop amount in the third quarter reached approximately 476 billion KRW, with monthly figures of 144 billion KRW (July), 189 billion KRW (August), and 143 billion KRW (September), which are record highs. The hold rates also increased to 16.8%, 18.6%, and 21.0% respectively, showing positive results. The most notable point is that the number of casino visitors increased from 34,000 to 37,000, indicating a structural fundamental improvement.”

He expected the performance growth trend of Lotte Tour Development to continue. He said, “The number of foreign arrivals is expected to increase due to the expansion of air routes and direct flights,” adding, “In particular, direct flights to Jeju cities are on the rise, and flights to regions outside China are also expanding.”

He also analyzed, “The attractiveness of tourist destinations is further increasing due to the visa-free policy, and profitability is expected to improve with the increase in hotel division occupancy rates. This is because hotel supply in the Jeju area is limited, and the number of foreign arrivals continues to increase.”

He continued, “Lotte Tour Development plans to maximize profitability through operational store efficiency, and through this, stronger performance growth is expected in the future. Based on the third quarter results, the growth momentum will continue, and positive results are expected to be maintained in the fourth quarter as well.”

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