Casinos in South Korea: GKL posts net income of US$4.3m for Q3
Grand Korea Leisure’s income was down 49.5 per cent in year-on-year terms.
South Korea.- Grand Korea Leisure (GKL) has shared its financial results for the third quarter of the year. It posted a net profit of KRW6.04bn (US$4.3m), down 49.5 per cent in year-on-year terms and 46.6 per cent sequentially.
Overall sales reached KRW93.77bn (US$66.7m), a decrease of 2.9 per cent year-on-year and 5.1 per cent from the previous quarter. Cumulative sales for the first nine months of the year were down 5 per cent in year-on-year terms to KRW290.54bn (US$206.2m).
Casino net sales were KRW287.3bn (US$204.5m), a decrease of 6.1 per cent from a year earlier, while the casino drop increased by 13.5 per cent year-on-year to KRW2.77tn (US$1.97bn). Grand Korea Leisure runs three casinos in South Korea under the Seven Luck brand. Two are in Seoul, while the third is in Busan. Some 58 per cent of the casino drop was generated from its Gangnam Coex property. Visitor numbers totalled 751,047 in the first nine months of the year. That’s a 41.8 per cent increase compared to last year.
The hold rate for the company’s casino operations was 10.4 per cent, down 12.5 per cent year-on-year. The expenses related to marketing activities totalled KRW47.6bn (US$33.9m). That’s an increase of 18.1 per cent in year-on-year terms.
In October, casino sales were down 11 per cent in month-on-month terms, from KRW34.3bn (US$25.7m) to KRW30.54bn (US$22.2m). Compared to last year, casino sales were up by 6.6 per cent. Table-game revenue was KRW27.80bn (US$20.2m), up 0.7 per cent year-on-year. Machine game sales were KRW2.73bn (US$2m), up slightly.
In June, the company launched a new business task force, which will concentrate on three main areas: expanding its casino business internationally, digitalising casino operations and educating the tourism industry. Co-chaired by GKL’s CEO, Kim Young-San, the task force is made up of 11 company officials.
The CEO said the foreigner-only casino operator needed to prepare for future competition from the introduction of casinos in Japan and possibly Thailand.
Paradise Co posts net income of US$14.20m for Q3
Paradise Co has reported that net income attributable to shareholders was KRW19.66bn (US$14.20m) in the third quarter of the year. The figure was down 55 per cent year-on-year but up 32.71 per cent when compared to the previous quarter.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) were KRW55.73bn (US$28.35m) down 27.7 per cent year-on-year but up 7.4 per cent sequentially. Overall sales reached KRW268.25bn (US$136.34m), down 6.1 per cent year-on-year, and 1.8 per cent in quarter-on-quarter terms.
