Lotte Tour Development has successfully achieved a quarterly transition to profitability for the first time since the opening of the Jeju Dream Tower complex resort.
On the 5th, Lotte Tour Development announced through its semi-annual report that it recorded a revenue of 157.7 billion won for the second quarter this year on a consolidated basis. Operating profit reached 33.1 billion won, the largest ever. Net profit was 5.9 billion won, marking a transition to profitability. This is the first since the opening of the Jeju Dream Tower complex resort on Dec. 18, 2020.
The improvement in performance is attributed to the growth in its main sectors: casinos, hotels, and travel.
Dream Tower Casino's second-quarter net sales (the total sales minus agent commissions, etc.) reached 110.038 billion won, an increase of 30.2% compared to the previous quarter. For the first time in history, quarterly sales surpassed 100 billion won. Compared to the same period last year, it increased by 65.4%.
The number of casino visitors was 148,475, an increase of more than 35% compared to the previous quarter (109,631), and the drop amount (the amount customers changed for chips) reached 66.85 billion won, a 38.7% increase from the previous quarter (48.2 billion won).
The average occupancy rate (OCC) is 87.6%. Room sales totaled 127,580 rooms, an increase of 15.2% compared to 110,769 rooms during last year's peak season in the third quarter. The proportion of foreign guests recorded was 66.4%.
The travel sector, a traditional business area, recorded second-quarter sales of 24.242 billion won, growing 10% compared to the previous quarter.
Lotte Tour Development noted, "Initially, securities analysts expected a transition to net profit starting next year, but explosive sales growth in the second quarter advanced this timeline significantly." The company added, "Historically, the third and fourth quarter results have been better than the second quarter, so depending on the performance in the second half of the year, 2025 could very well become the true beginning of a net profit era."