New commission structure could boost Jeju Dream Tower revenue growth, brokerage says
0
0
Hana Securities says Lotte Tour Development’s expanded rolling chip scheme could generate more than US$67m in additional annual revenue.
South Korea.- Hana Securities has reinforced its positive outlook on Lotte Tour Development, citing the launch of a new rolling commission programme at Jeju Dream Tower. According to Aju Press, Hana Securities said the revised commission structure introduced in May could generate more than KRW 100bn (around US$67m) in additional annual casino revenue for the integrated resort.
Lee Gihun, a researcher at Hana Securities, stated in a report cited by The Asia Business Daily: “With an increase in tables, improvement in hold rate, ample capacity for comps, and the expansion of the rolling business, another upgrade in performance is expected.
“Starting from the second half of the year, refinancing is possible, which is highly likely to structurally reduce interest expenses.”
The brokerage reiterated a “buy” recommendation and a target price of KRW 28,000, naming the company its top pick within the leisure sector following strong first-quarter results. Casino revenue rose more than 40 per cent year-on-year in the first quarter.
Hana Securities says Lotte Tour Development’s expanded rolling chip scheme could generate more than US$67m in additional annual revenue. South Korea.- Hana Securities has reinforced its positive outlook on Lotte Tour Development, citing the launch of a new rolling commission programme at Jeju Dream Tower. According to Aju Press, Hana Securities said the revised commission…
