[Click e-Stock] "Lotte Tour Development Aims for Rebound with Peak Season and Expanded VIP Strategy"

On April 17, Eugene Investment & Securities analyzed Lotte Tour Development and stated that the company is expected to see a rebound in performance in the second quarter of this year as it enters the peak season, backed by strengthened marketing focused on VIP customers and improvements in cost structure.

Hyunji Lee, a researcher at Eugene Investment & Securities, explained, "In the first quarter of this year, the drop amount was KRW 650.5 billion (up 35.0% year-on-year), and although the February drop amount increased by only 4.6%, performance rebounded into double digits in March, maintaining robust growth."

It is particularly positive that customer indicators improved even during the off-season. The rapid increase in new member inflow is evaluated as having laid the foundation for future earnings growth. She emphasized, "In particular, even though March was the off-season, monthly new membership net additions reached 4,000, indicating meaningful growth."

The company plans to further strengthen its targeting of VIP customers as it enters the peak season. Its strategy is to secure both high-value and general customers by expanding table operations and improving the gaming environment. Researcher Hyunji Lee analyzed, "Ahead of the official start of the peak season, from April the company plans to expand rolling tables and strengthen marketing targeting high-rollers, and with the expansion of poker tables, balanced growth of both VIP and mass segments is expected."

There is also room for improvement in profitability. If the burden of financial costs is alleviated through refinancing scheduled within the year, profitability is expected to strengthen further. She stated, "Starting from the peak season in the second quarter, we expect the company to once again record solid performance, and with reduced interest expenses through refinancing within the year, further improvement in profitability is anticipated."

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