Lotte Tour Development Achieves Record-High Q1 Sales of 156.2 Billion Won... Operating Profit More Than Doubles

Lotte Tour Development has entered a full-fledged phase of profitability growth, with operating profit more than doubling following record-high revenue in the first quarter of this year.

According to the quarterly report disclosed by Lotte Tour Development on May 14, consolidated revenue for the first quarter of 2026 was KRW 156.2 billion, and operating profit reached KRW 28.8 billion. Revenue increased by 28.1% compared to the same period last year, while operating profit surged by 121%.

Notably, this is the first time first-quarter revenue has surpassed KRW 150 billion, and the pace of profitability improvement is accelerating. While last year's first-quarter revenue growth rate stood at 14.8% year-on-year, this year it expanded to 28.1%. The operating profit growth rate also jumped sharply from 48.2% last year to 121% this year.

The operating margin continued its upward trend. The operating margin, which was 8.3% in the first quarter of 2024, rose to 10.7% last year and reached 18.4% this year, demonstrating a much stronger profit structure.

Net profit also showed an improvement trend. The consolidated net loss narrowed significantly from a loss of KRW 23.7 billion in the first quarter of last year to a loss of KRW 7.5 billion this year. The company explained that the fact these results were achieved during the first quarter, typically considered the off-season, is fueling expectations for further improvement in annual performance.

Lotte Tour Development analyzed that the leverage effect of operations is materializing as the increase in costs remains relatively limited compared to revenue growth. The company stated, "While first-quarter revenue grew by 28.1% year-on-year, operating expenses increased by only 17%," adding, "We expect the structure in which profit grows faster as revenue increases to be further reinforced starting this year."

This performance improvement was largely due to simultaneous growth in the casino and hotel businesses, centered around the Jeju Dream Tower integrated resort.

In the casino segment, first-quarter revenue was KRW 118.63 billion, marking a 40.3% increase year-on-year. The number of casino visitors grew by 37.3%, from 109,631 last year to 150,553 this year, and table drop amount also rose by 36.7%, from KRW 419.68 billion to KRW 573.87 billion.

The table hold rate was 19.7%, up 0.7 percentage points from the same period last year. Industry observers are paying attention to the fact that Jeju Dream Tower Casino's hold rate reached as high as 22.6% in April, approaching the average hold rates of mega integrated resort casinos in Macau's Cotai area.

The hotel segment also maintained its growth momentum. Including Grand Hyatt Jeju, hotel revenue was KRW 38.14 billion, a 20.2% increase year-on-year.

Room sales amounted to 109,233 rooms, up 37.1% compared to the same period last year, and occupancy rate (OCC) rose sharply from 55.3% to 75.9%. The proportion of foreign guests also increased from 66.8% to 73.5%, further solidifying its position as a representative landmark hotel in Jeju.

The food and beverage (F&B) business also performed well. Based on the competitiveness of its globally renowned chefs, the number of customers increased by 14.5% to 280,530, and revenue also rose by 24.1% to KRW 9.54 billion.

Lotte Tour Development stated, "Despite geopolitical instability in the Middle East and the impact of the off-season, we achieved record-high revenue and profitability starting from the first quarter. As the peak tourism season gets underway, our annual performance is expected to see another step up this year."

This performance demonstrates that, thanks to the parallel growth of Jeju Dream Tower's casino and hotel businesses, Lotte Tour Development is simultaneously achieving expansion in scale and improvements in profitability, signaling its entry into a full-fledged performance upgrade phase.

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