Paradise (034230.KS): Expect 2026 EBITDA to Increase 11% YoY on Strong GGR Growth YoY at Wholly-Owned Casinos

Research evidence excerpt

Paradise (034230.KS): Expect 2026 EBITDA to Increase 11% YoY on Strong GGR Growth YoY at Wholly-Owned Casinos

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13 Jul 2026 12:01:39 ET │ 14 pages

Paradise (034230.KS)

Expect 2Q26 EBITDA to Increase 11% YoY on Strong GGR Growth YoY at

Wholly-Owned Casinos

CITI'S TAKE

Paradise’s 2Q26 GGR grew 9% YoY 2Q26, driven by its three wholly-owned Buy

casinos (+15% YoY) and P-City (+3% YoY). Jeju Grand is likely benefiting from

the growing Jeju market as evidenced by the 83% YoY table volume growth Price (13 Jul 26 15:45) W12,550

in 2Q26. We expect a strong QoQ GGR recovery at Jeju Grand in 3Q26E as Target price W17,400↓

the blended table hold rate normalizes from the extremely low 0.9% in

from W19,5002Q26. Reflecting the likely limited profit contribution from Hyatt Regency at

P-City, we expect a largely stable 2Q26E EBITDA margin despite the solid Expected share price return 38.6%

topline growth (CitiE +12% YoY). We expect Paradise to report an 11% YoY Expected dividend yield 1.2%

increase in 2Q26E EBITDA to KRW68bn. We raise our FY26-28E EBTIDA

Expected total return 39.8%forecasts by 3-7% but adopt a 6.2x EV/EBITDA multiple for P-City (prev:

8.5x) in our SOTP valuation reflecting where the casino is in its growth cycle. Market Cap W1,162,499M

We thus cut our TP from KRW19,500 to KRW17,400 but maintain Buy. US$768M

2Q26 GGR Update — Paradise’s 2Q26 GGR rose ~9% YoY to KRW249bn (largely in

line with Citi’s estimate of KRW248bn). Overall table revenue rose ~7% YoY to

KRW232bn, mainly driven by ~12% YoY growth in total table volumes (KRW2.06tr, Price Performance

+7% vs. Citi’s estimate), but partially offset by the 0.5-ppt YoY lower table hold (from

(RIC: 034230.KS, BB: 034230 KS)11.8% in 2Q25 to 11.3% in 2Q26). Paradise saw positive table volume growth YoY