Kangwon Land swings to KRW3.6bn Q3 net loss as revenue falls 3.8%

Kangwon Land reported third-quarter revenue of KRW369.45bn ($271.9m), down 3.8% year-over-year, as the South Korean casino operator moved to a net loss despite a sequential recovery in sales.

Its provisional consolidated filing on November 6 put operating profit at KRW59.67bn, a 17.9% decline from the same quarter of 2025. The bottom line shifted to a KRW3.63bn loss from a KRW113.07bn profit a year earlier.

Revenue was 6.9% higher than in the second quarter and operating profit rose 36.2% quarter-over-quarter. That improvement did not carry through to net earnings. Profit before tax fell to KRW3.74bn from KRW144.76bn a year earlier, although the short provisional filing did not explain the change in detail. It also did not disclose EBITDA. 

For the first nine months, revenue stood at KRW1.09trn, down 1.6%, while operating profit fell 16.1% to KRW172.39bn. Net profit for the period was KRW145.90bn, a 41.8% decrease. The group therefore remained profitable on a year-to-date basis despite the quarterly loss.

Kangwon Land operates South Korea's only casino that permits local residents to gamble. Its broader resort also includes hotels, condominiums, ski facilities and other leisure businesses, making room availability relevant to both non-gaming income and visitor activity.

Company figures reported by Korean media put third-quarter casino visits at 640,039, down 3.2% year-over-year. Sales from the general gaming floor decreased 4.8% to KRW294.9bn as visitor numbers and drop declined. The members' floor moved in the other direction, with sales up 9.6% to KRW64.5bn after gains in both visits and drop.

Non-casino revenue fell 17.4% to KRW41.7bn. Kangwon Land attributed lower hotel, condominium and Water World revenue partly to its accommodation renovation. Work that began in March covers 477 rooms in the Grand Hotel main tower and 280 in the Mountain Condo. 

The company expects the condominium work to finish in late 2027 and the hotel work in early 2028.

The operator also said it intends to buy back KRW20bn of shares before year-end, with a detailed schedule to follow a board decision. The earnings figures remain provisional and could change when the company completes its financial review. 

In October, Kangwon Land's board approved a revised strategy for 2027 to 2031 with a KRW3trn company-wide revenue objective. The new quarterly figures give investors an early measure of the gap between current trading and that longer-term plan.