The company reported consolidated revenues of 156.2 billion won and an operating profit of 28.8 billion won for the first quarter, as announced on May 14.
Revenue increased by 28.1% compared to the same period last year, surpassing 150 billion won for the first time in a first quarter. Operating profit surged by 121%, significantly exceeding last year's figures for the same period.
Profitability indicators also showed substantial improvement. The operating profit margin rose sharply to 18.4%, up from 8.3% in the first quarter of 2024 and 10.7% in 2025. The net loss for the period decreased significantly to 7.5 billion won, down from a loss of 23.7 billion won in the same quarter last year.
This strong performance is attributed to the simultaneous growth of the Jeju Dream Tower casino and the Grand Hyatt Jeju Hotel. The casino sector reported revenues of 118.6 billion won, a 40.3% increase year-on-year. The number of casino visitors rose by 37.3% to 150,553, and the table drop amount (the amount exchanged for chips) increased by 36.7% to 573.8 billion won. The casino's table hold rate was recorded at 19.7%.
The hotel sector also saw a revenue increase of 20.2% year-on-year, reaching 38.1 billion won. Despite the first quarter typically being a low season for the tourism industry, the proportion of foreign guests expanded to 73.5%, resulting in an occupancy rate of 75.9%.
A Lotte Tour Development official stated, "While first-quarter revenue grew by 28.1% year-on-year, operating costs only increased by 17%, allowing for a larger operating profit margin. We expect the operating leverage effect, where profits increase at a faster rate as revenue grows, to become more pronounced this year."
The outlook for the second quarter is also positive. In April, casino revenue reached 48.8 billion won, a 48.5% increase compared to the same period last year, continuing a clear upward trend.
The strong performance in April is attributed to the expansion of direct international flights from Jeju, coinciding with major holidays in China and Japan, which significantly boosted the influx of foreign tourists. Additionally, both VIP casino customers and general foreign guests have been steadily increasing.
The Lotte Tour Development official added, "Despite concerns over the situation in the Middle East and the challenges of the low season, we have already demonstrated record revenue and explosive profit generation in the first quarter. As the peak tourist season approaches, we expect this year's annual performance to show a significant quantum leap."
* This article has been translated by AI.
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