PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩150 per share · Prices as of the 2026-10-02 close
Revenue and casino drop amount continue to hit record highs, but Hyatt integration costs and a proposed hike in the tourism development fund levy are emerging as key profitability variables.
2025 consolidated revenue reached KRW1,149.9 billion and operating profit KRW155.8 billion, marking a second consecutive year of record results.
Casino drop amount surpassed KRW2 trillion in a single quarter for the first time in 2Q26, but operating profit declined year-on-year due to Hyatt acquisition-related costs.
While Chinese VIP recovery remains slow, Japanese and other VIP segments along with mass customers are offsetting the gap, diversifying the customer mix.
The government's push to raise the tourism development fund levy cap from 10% to 15% has increased regulatory uncertainty across the casino sector.
Mid- to long-term room capacity investments, including the Hyatt Regency Incheon integration and a new Jangchung-dong hotel targeted for completion in August 2028, are underway.
Paradise Co is Korea's largest foreign-only casino operator, running casinos in Seoul (Walkerhill), Incheon Paradise City, Busan, and Jeju.
Its integrated resort segment centers on Paradise City in Incheon's Yeongjongdo, combining casino, hotel, entertainment, and MICE facilities; segment revenue reached KRW597.5 billion in 2025, up 10.8% year-on-year.
The hotel segment includes the five-star Paradise Hotel Busan in Haeundae and Embassy Suites in Orlando, USA.
Subsidiary Paradise Segasami acquired the Grand Hyatt Incheon West Tower for KRW210 billion last year and began independently operating it as Hyatt Regency Incheon Paradise City starting March this year, expanding Paradise City's total room count from 769 to 1,270.
In Seoul's Jangchung-dong, the company is investing KRW575 billion to build a new hotel targeted for completion in August 2028, continuing its room-capacity expansion strategy aimed at attracting casino guests.
Key competitors include Grand Korea Leisure (GKL), which operates casinos in Seoul's Gangnam and Yongsan and in Busan, and Lotte Tour Development, which runs the Jeju Dream Tower integrated resort.
Given the nature of the foreign-only casino business, premium VIP services are central to operations, with complimentary room and service marketing significantly affecting both revenue and costs.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩284.5B | ₩42.9B | 15.1% |
| 2025Q3 | ₩288.2B | ₩39.5B | 13.7% |
| 2025Q4 | ₩293.9B | ₩16.2B | 5.5% |
| 2026Q1 | ₩294B | ₩37.3B | 12.7% |
| 2026Q2 | ₩318.1B | ₩35.6B | 11.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩587.6B | ₩10.4B | ₩25.3B | 1.8% | 1.9% | 108.4% |
| 2023 | ₩994.2B | ₩145.8B | ₩62.6B | 14.7% | 4.5% | 102.7% |
| 2024 | ₩1.1T | ₩136.1B | ₩75.6B | 12.7% | 4.6% | 89.6% |
| 2025 | ₩1.1T | ₩155.8B | ₩94.4B | 13.6% | 5.5% | 84.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Paradise's annual revenue rose steadily from KRW587.6 billion in 2022 to KRW994.2 billion in 2023, KRW1,072.1 billion in 2024, and KRW1,149.9 billion in 2025, exceeding the KRW1 trillion mark for a second consecutive year.
Operating margin surged from a pandemic-affected 1.8% in 2022 to 14.7% in 2023, then held in double digits at 12.7% in 2024 and 13.6% in 2025. Net profit attributable to owners rose to KRW94.3 billion in 2025, up 24.9% from KRW75.6 billion in 2024, continuing the earnings recovery.
On a quarterly basis, operating profit fell from KRW42.9 billion in 2Q25 to KRW39.5 billion in 3Q25 and KRW16.2 billion in 4Q25, before rebounding to KRW37.3 billion in 1Q26 and easing slightly again to KRW35.6 billion in 2Q26.
Kiwoom Securities noted that fourth-quarter 2025 results fell short of consensus due to one-off costs and wage burdens.
In 2Q26, revenue rose 11.8% year-on-year to KRW318.1 billion, but operating profit fell 17% to KRW35.6 billion, attributed to increased headcount and comp/advertising expenses tied to the Hyatt acquisition and Jangchung-dong hotel development.
However, Hyatt's operating loss narrowed from KRW5.0 billion in 1Q to KRW1.8 billion in 2Q, signaling a gradual easing of cost pressure.
Profitability deterioration was particularly pronounced in 1Q26, when revenue grew 3.8% year-on-year to KRW294.0 billion while operating profit fell 34.9% to KRW37.3 billion, leaving subsequent cost trends as a key variable for future results.
Korea's foreign-only casino industry has been in a growth phase since 2025, driven by the recovery of inbound foreign tourism, with revenue and drop amount rising in tandem.
Paradise's casino drop amount reached KRW2.0585 trillion in 2Q26, up 12.2% year-on-year and surpassing KRW2 trillion in a single quarter for the first time; this was driven more by customer diversification than a full Chinese VIP recovery, as Chinese VIP drop rose only 4.9% while other VIP segments grew 26.5% and mass customers grew 18%, even as Chinese VIP visitor numbers fell 15.4%.
In terms of competitive positioning, Lotte Tour Development, which operates the Jeju Dream Tower, has shown the fastest growth—its cumulative January-to-July casino revenue rose 33.3% versus 4.6% for Paradise and 8.0% for GKL.
In June, visitors from China, Japan, and Taiwan rose 36.2%, 21.3%, and 35.3% respectively, indicating simultaneous recovery across major source markets for foreign-only casinos.
However, casino revenue is heavily influenced not only by visitor numbers but also by the hold rate (the share of wagered amounts retained by the casino); Paradise's revenue growth lagged its drop amount growth, while GKL and Lotte Tour Development saw revenue rise even as drop amounts declined, due to higher hold rates.
Amid this ongoing recovery, differences in customer mix and hold rates across venues continue to differentiate revenue growth rates among operators.
The company has stated plans to sustain revenue growth by fully activating Hyatt-related synergies, expanding premium VIP services, and increasing marketing efforts.
With Hyatt's operating loss narrowing from KRW5.0 billion in 1Q to KRW1.8 billion in 2Q, further second-half profit improvement remains a key focus, alongside a KRW575 billion investment in a new Jangchung-dong hotel in Seoul targeted for completion in August 2028.
An external variable remains the Ministry of Culture, Sports and Tourism's push to raise the tourism development fund levy cap from the current 10% of revenue to 15%; the government is reviewing a plan to create a new high-revenue bracket above the existing 10% tier with a higher rate applied to the excess, though the specific revenue threshold and rate have not been finalized.
Hana Securities estimated that a 5 percentage point increase in the levy rate would reduce Paradise's operating profit by 22%, while Eugene Investment Securities estimated an additional burden of roughly KRW47 billion for Paradise, potentially cutting operating profit by 20-30% versus prior forecasts.
The government is also pursuing a five-year casino license renewal system and a prior-approval requirement for ownership transfers, prompting 12 tourism-related industry associations, including the Korea Casino Tourism Association, to jointly demand withdrawal of the proposals in August.
While the Ministry has stated the progressive rate structure would apply only to the high-revenue bracket and that industry concerns are overstated, uncertainty is likely to persist until specific thresholds are finalized through enforcement decree revisions.
Paradise's share price tends to trade at a discount to book value, a somewhat contrasting picture given that earnings have recovered from the pandemic shock to post record results for two consecutive years.
The company has paid annual cash dividends, though the yield itself is not particularly high relative to industry peers.
Market valuation sentiment appears to have turned more cautious recently: Hana Securities, in a July 2026 report, cut its target price for Paradise by 28% to KRW18,000, citing concerns over the proposed tourism development fund levy hike, while iM Securities lowered its target from KRW23,000 to KRW17,000 around the same time.
Both brokerages stated that a wait-and-see stance was warranted in the near term until regulatory uncertainty is resolved.
Conversely, around May, KB Securities and Eugene Investment Securities lowered their target prices to reflect Hyatt integration cost burdens while maintaining buy ratings, indicating some divergence across brokerages in how and when regulatory risk has been incorporated.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Casino drop amount reached KRW2.0585 trillion in 2Q26, surpassing KRW2 trillion in a single quarter for the first time. Even without a full Chinese VIP recovery, other VIP segments (+26.5%) and mass customers (+18%) have driven growth, reducing reliance on any single source market. This diversified customer base could serve as a buffer against volatility in specific markets.
The Grand Hyatt Incheon acquisition expanded Paradise City's room count from 769 to 1,270, increasing capacity for VIP comp rooms.
A new hotel in Seoul's Jangchung-dong, backed by a KRW575 billion investment, is under construction and targeted for completion in August 2028, continuing to build infrastructure to attract casino guests over the medium to long term.
2025 consolidated revenue of KRW1,149.9 billion and operating profit of KRW155.8 billion marked the company's largest scale since its founding, with net profit attributable to owners rising 24.9% year-on-year to KRW94.3 billion. The recovery in inbound demand from growing foreign tourist arrivals underpins this earnings growth.
Increased headcount and comp/advertising costs tied to the Hyatt acquisition and Jangchung-dong hotel development have weighed on profitability. Operating profit fell 34.9% year-on-year in 1Q26, and even as 2Q26 revenue rose 11.8%, operating profit declined 17%. While Hyatt's operating loss has been narrowing, full profit normalization may take additional time.
The government is pursuing legislation to raise the tourism development fund levy cap from 10% to 15% of revenue for casino operators.
Analysts have estimated that a 5 percentage point increase could cut Paradise's operating profit by more than 20%, and related uncertainty is expected to persist until specific revenue thresholds and rates are finalized.
Paradise's cumulative casino revenue growth of 4.6% for January-July 2026 significantly lags Lotte Tour Development's 33.3%. Even when drop amounts rise, hold rate dynamics have at times resulted in relatively lower revenue growth, raising the possibility that the growth gap with competitors could persist.
Alongside the proposed levy hike, a five-year casino license renewal system and prior-approval requirements for ownership transfers are also under discussion.
Twelve tourism-related industry associations, including the Korea Casino Tourism Association, have opposed these changes and demanded withdrawal, and the final outcome could affect business stability and investment plans.
With Chinese VIP recovery relatively slow and visitor numbers even declining, demand could again be affected by shifts in specific countries' tourism policies or geopolitical variables. Casino revenue is influenced not only by drop amount but also by hold rate, resulting in relatively high earnings volatility.
Large-scale capacity expansion investments continue, including KRW575 billion for the new Jangchung-dong hotel and KRW210 billion for the Grand Hyatt Incheon acquisition.
The impact of initial operating and labor cost burdens on profitability could persist for some time, making cash flow management a key variable until these investments are recouped.
Monthly casino sales and drop amount disclosures (preliminary) around the Chuseok holiday and China's National Day period can help gauge the direction of third-quarter results.
In the third-quarter earnings release, it will be important to check whether the trend of narrowing Hyatt integration costs continues and whether the tourism fund levy issue is reflected in guidance.
How the revenue threshold and applicable rate for the new high-revenue bracket are finalized during the enforcement decree revision process will be a key variable for future cost estimates.
It is worth continuously monitoring the introduction and National Assembly deliberation of bills related to the casino license renewal system and prior-approval requirements for ownership transfers.
This is the targeted completion date for the new Jangchung-dong hotel; construction progress and capital expenditure trends warrant longer-term monitoring.
Paradise has posted record revenue and operating profit for two consecutive years on the back of recovering foreign tourism, with casino drop amount surpassing KRW2 trillion in a single quarter for the first time in 2Q26, underscoring clear top-line growth.
However, rising labor, comp, and advertising costs tied to the Hyatt acquisition and Jangchung-dong hotel development have pulled down recent quarterly operating profit year-on-year, making the timing of cost normalization a key near-term variable.
In addition, the government's push to raise the tourism development fund levy cap from 10% to 15% and to introduce a casino license renewal system have heightened regulatory uncertainty across the sector, with brokerage target prices recently trending lower to reflect this.
On the competitive front, Lotte Tour Development has posted the fastest growth on the strength of its Jeju Dream Tower, making the growth gap with Paradise worth watching.
While customer diversification—with Japanese, other VIP, and mass segments offsetting slow Chinese VIP recovery—is a positive factor, earnings volatility tied to hold rate fluctuations remains.
Third-quarter results and the finalization of the tourism law's enforcement decree revisions are likely to be the key variables shaping earnings and valuation trends going forward.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.