Kangwon Land Sees Surge in Q3 Profits: 24.3% Year-on-Year Boost

(Photo = Gangwon Land)
Kangwon Land recorded KRW 92 billion in net profit, up 24.3% from the same period last year, in its provisional operating results for the third quarter of 2024 on a separate basis.

Sales amounted to KRW 375.5 billion, an increase of 0.6% compared to the same period last year and an increase of 11.2% compared to the previous quarter.

Casino sales amounted to 320.4 billion won, an increase of 0.1% compared to the same period last year and 5% compared to the previous quarter.

In particular, member business sales increased by 8.6% compared to the same period last year.

Operating profit increased by 1.3% to KRW 93 billion compared to the same period last year, and net profit increased by 24.3% to KRW 92 billion.

The strong net profit was largely due to the increase in financial profit, which is non-operating profit, of 20.1 billion won compared to the previous year.

Cumulative net profit in the third quarter of this year was 346.1 billion won, exceeding 2023 net profit of 35.9 billion won.

A Kangwon Land official said, “According to the results of the 2019 tax investigation, a request for correction of 46.5 billion won worth of value-added tax paid is in progress, and we expect the results to be released within this year.”

Meanwhile, Kangwon Land became the first listed public company to participate in the ‘Value Up Program’ on the 10th, aiming to achieve a price-to-book ratio (PBR) of 1.2 times, a total shareholder return rate of 60%, and 100% compliance with key corporate governance indicators by 2026. The ‘Corporate Value Enhancement Plan’ was revealed.

As one of the major plans for this, a total of 100 billion won worth of stock repurchases will be carried out, and 40 billion won will be invested this year. Additionally, we plan to maintain the dividend payout ratio at least 50%.

An official from Kangwon Land said, “We have been steadily purchasing our own shares every day since the 15th.” He added, “Buying our own shares has the effect of increasing dividends per share by reducing the number of shares in circulation, and as this year’s net profit is showing good performance, dividends per share are expected to increase compared to the previous year. “It is highly likely,” he said.

Kangwon Land is also improving dividend procedures to protect shareholder rights in accordance with global standards.

According to this improvement in dividend procedures, the dividend base date for fiscal year 2024 is scheduled to be from late March to early April 2025.

Shin Hyo-jae, Money Today Broadcasting MTN reporter