Kangwon Land’s second-quarter gross gaming revenue (GGR) fell 3.4 percent year-on-year to KRW349.1 billion ($244 million), as weaker mass-market activity and an unfavorable VIP hold rate weighed on performance.
Mass-market gaming revenue declined 2.4 percent to KRW281.8 billion ($197 million) in the three months to 30th June, according to the company’s preliminary results released on Tuesday.
The segment recorded a 3.5 percent decrease in visitation and a 3.9 percent decline in drop, the amount exchanged for gaming chips.
VIP gaming revenue fell more sharply, dropping 7.6 percent to KRW67.4 billion ($47.1 million). The decline came despite VIP visitation rising 18 percent and drop increasing 7.2 percent, with Kangwon Land attributing the weaker revenue to an unfavorable hold rate.
After deductions for High1 complimentary points and the inclusion of casino food and beverage sales, net gaming revenue decreased 3.5 percent to KRW319.9 billion ($223.6 million).
Kangwon Land operates South Korea’s only casino permitted to accept local players.
Renovations weigh on resort revenue
Non-gaming revenue declined 12.3 percent to KRW25.7 billion ($18 million), primarily due to lower hotel and condominium room revenue during ongoing renovations.
The company has been renovating 757 rooms since March, comprising 477 rooms in the Grand Hotel Main Tower and 280 units at the Mountain Condo. The condominium renovations are scheduled for completion in the fourth quarter of 2027, followed by the hotel work in the first quarter of 2028.
The declines across gaming and non-gaming operations reduced consolidated revenue by 4.2 percent to KRW345.55 billion ($241.5 million). Operating profit fell 26.2 percent to KRW43.18 billion ($30.2 million), while operating expenses remained broadly unchanged.
Net profit nevertheless increased 59.8 percent to KRW100.35 billion ($70.1 million), supported by KRW97.3 billion ($68 million) in fair-value gains on financial assets. Kangwon Land did not identify the underlying investments.
The operator has allocated KRW145.4 billion ($101.6 million) for investment in 2026, of which KRW87.2 billion ($60.9 million) had been deployed. Current projects include the renovation of its VIP gaming floor and construction of a second casino.
For the first half of 2026, consolidated revenue edged down 0.4 percent, while operating profit declined 15.6 percent.
