Kangwon Land stock faces earnings pressure after Q3 loss

Kangwon Land reported weaker preliminary third-quarter results on November 6, with revenue falling 3.8 percent year on year to KRW 369.5 billion and operating profit declining 17.9 percent to KRW 59.7 billion. The figures were reported by Seoul Economic Daily.

Casino traffic and resort revenue weaken

Casino visits fell 3.2 percent to 640,039 in the quarter, while casino revenue declined 1.8 percent to KRW 327.8 billion. Revenue from the general gaming floor fell 4.8 percent, partly offset by a 9.6 percent increase on the members-only floor.

Non-casino revenue dropped 17.4 percent to KRW 41.7 billion. Hotel revenue declined 21.6 percent, while condominium and Water World revenue also fell as Kangwon Land renovated 757 rooms, equal to 41 percent of its total room inventory.

Bond losses reverse quarterly profit

Kangwon Land swung to a net loss of KRW 3.6 billion from a net profit of KRW 113.1 billion a year earlier. Financial income fell to negative KRW 55.2 billion from positive KRW 73.2 billion, with the company attributing the change to fair-value losses on bonds after higher yields reduced their market valuation.

For the first nine months, revenue decreased 1.6 percent to KRW 1.094 trillion. Cumulative operating profit fell 16.1 percent to KRW 172.4 billion, while net profit declined 41.8 percent to KRW 145.9 billion.

Renovations set the next milestones

Mountain Condo renovations are scheduled for completion in the fourth quarter of 2027, followed by work on the High1 Grand Hotel main tower in the first quarter of 2028. Kangwon Land is also investing in a second casino floor and remodeling its members-only gaming floor, making execution and future capacity the main operational themes for investors.

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