South Korea’s Kangwon Land reported a sharp 62.2 percent year-on-year decline in net profit for the second quarter of 2025, falling to KRW60.63 billion (approximately $43.5 million).
The decline was attributed to a 14.6 percent surge in operational costs, which outpaced growth in gaming revenue, according to unaudited results filed Tuesday with the Korea Exchange.
The April–June performance also dragged down the company’s results for the first half of the year. Net profit for the six-month period fell 46.3 percent year-on-year to KRW136.38 billion ($97.9 million).
Second-quarter sales reached KRW360.7 billion ($258.9 million), with casino revenue contributing KRW331.5 billion ($237.8 million). This marked an 8.6 percent year-on-year increase in casino sales, largely driven by mass table and slot machine play.
Kangwon Land also reported a 9.4 percent rise in its second-quarter table drop—the amount exchanged for chips—reaching KRW1.47 trillion ($1.06 billion). The increase was attributed to enhanced betting limits introduced during the reporting period.
However, non-gaming revenue declined 9.6 percent year-on-year to KRW29.2 billion ($21 million). Meanwhile, operational costs increased 14.9 percent year-on-year to KRW302.9 billion ($217.4 million), mainly due to higher wage expenses and contributions to local community funds.
For the first half of 2025, Kangwon Land generated total sales of KRW726.56 billion ($521.5 million), up 2.9 percent year-on-year. However, this modest gain was not enough to offset the sharp drop in profitability.
The company also disclosed its capital expenditure plans for the 2025 fiscal year, budgeting KRW126.2 billion ($90.6 million). Of that amount, approximately KRW84.7 billion ($60.8 million), or 67 percent, was allocated to ‘operating investment’. This includes the expansion and renovation of the casino mass floor, VIP floor upgrades, resort facility enhancements, and the construction of a second casino at the site.
By the end of June, Kangwon Land had already invested KRW51.1 billion ($36.7 million) under the operating investment category.
