"High-Value Foreign Tourists Driving Quantum Leap in Earnings [Click e-Stock]"

원본보기 아이콘

On May 6, Meritz Securities analyzed that Lotte Tour Development is continuing its steep growth trajectory, with the recovery of foreign tourists-centered on the Jeju Dream Tower Casino-being strongly reflected in its financial results. The report emphasized that the key driver of expanding profitability is not just the increase in the number of visitors, but the improvement in the customer mix.

Minyoung Kim, a researcher at Meritz Securities, stated, "Lotte Tour Development is translating the recovery of foreign tourists at the Jeju Dream Tower Casino into tangible results. Last year, revenue reached 653.4 billion won, up 38.6% from the previous year, while operating profit was 143.3 billion won, a 267% increase year-on-year, confirming both top-line growth and profitability improvement."

The growth trend has continued into this year. In the first quarter, casino revenue was 118.6 billion won, a 40.3% increase from the same period last year. In March, casino revenue reached 40.4 billion won, marking a 24.3% rise year-on-year and a 23.8% increase from the previous month, indicating sustained monthly recovery.

A particularly notable change is the qualitative improvement of customers. Kim explained, "The structural key point is the improvement in customer mix rather than just an increase in visitor numbers. In November 2025, casino revenue recorded 51.36 billion won, achieving over 50 billion won in monthly revenue for the third consecutive month. Despite a decrease in visitor numbers, both drop amount and hold rate remained solid, demonstrating the inflow of both general and high-value customers."

Additionally, the expansion of direct flights to Jeju, the recovery of inbound travelers-mainly from China, Taiwan, and Japan-and the increased utilization of Dream Tower hotel rooms are all occurring simultaneously, further strengthening the synergy between the casino and hotel operations.

It is expected that 2026 will be the first year these changes are fully reflected in earnings. Kim commented, "We expect 2026 to be the first year where both casino revenue growth and improved hotel and table occupancy rates are reflected. The key point to watch is not merely the recovery of total arrivals, but the improvement in drop amount per casino visitor, average spend per customer, and length of stay."

She added, "Due to the large fixed cost leverage in the business structure, a significant portion of increased revenue will translate into profit."

As a result, annual performance this year is projected to reach 762.2 billion won in revenue, up 16.6% year-on-year, and 193 billion won in operating profit, a 34.7% increase from the previous year.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.