Strong Performance in Casino and Hotel Businesses: Lotte Tour Development's Q1 Operating Profit Up 121% Year-on-Year
First-Quarter Revenue Surpasses 150 Billion Won for the First Time
Casino and Hotel Visitors and Sales Rise Together
Lotte Tour Development continued its upward momentum in the first quarter, driven by the simultaneous growth of its foreigner-only casino and hotel businesses.
On May 14, Lotte Tour Development announced in a regulatory filing that its consolidated operating profit for the first quarter of this year reached 28.8 billion won, a 121% increase compared to the same period last year. During the same period, revenue rose 28.1% to 156.2 billion won, marking the first time first-quarter sales have exceeded 150 billion won.
Despite instability in the Middle East, sales from the company's core assets—the Jeju Dream Tower Complex Resort Casino and the Grand Hyatt Jeju—both increased. Casino revenue for the first quarter was 118.63 billion won, a 40.3% rise year-on-year, with the number of visitors reaching 150,553, up 37.3% compared to the previous year. The table drop amount (the total money exchanged for casino chips by customers) also climbed 36.7% to 573.87 billion won. The hold rate (the percentage of revenue the casino retains from games) reached 19.7%, approaching the 20% mark.
Hotel revenue also grew 20.2% year-on-year to 38.14 billion won. The number of rooms sold in the first quarter reached 109,233, a 37.1% increase from the previous year, and the off-peak season occupancy rate (OCC) jumped from 55.3% last year to 75.9%. The proportion of foreign guests rose from 66.8% to 73.5% compared to the same period last year. The food and beverage (F&B) division also saw sales rise 24.1% to 9.54 billion won.
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A Lotte Tour Development spokesperson stated, "While revenue in the first quarter grew 28.1% year-on-year, operating expenses increased by only 17%, resulting in a greater expansion of operating profit. We expect the effects of operating leverage to become even more pronounced starting this year."
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