GKL Q3 operating profit drops 44% despite revenue growth
The company’s January-September results showed growth in casino drop and net sales, although operating profit and net income remained below 2025 levels.
Key takeaways
- GKL’s third-quarter revenue increased 0.3 per cent year-on-year to KRW109.67bn (US$81.4m).
- Net income fell 52.6 per cent to KRW6.95bn (US$5.2m), while operating profit declined 44.4 per cent to KRW9.62bn (US$7.1m).
- Nine-month revenue grew 6.4 per cent to KRW340.78bn (US$252.8m), despite a 16.1 per cent decline in net income.
- Casino drop increased 9.5 per cent to KRW2.97tn (US$2.2bn) in the first nine months of 2026.
South Korea.- The South Korean casino operator Grand Korea Leisure (GKL) has recorded consolidated revenue of KRW109.67bn (US$81.4m) for the third quarter. That’s a rise of 0.3 per cent year-on-year, according to preliminary results filed with the Korea Exchange on November 10.
Net income for the three months ended September 30, 2026, fell 52.6 per cent year-on-year to KRW6.95bn (US$5.2m). Operating profit also declined 44.4 per cent to KRW9.62bn (US$7.1m), while profit before tax fell 53.6 per cent to KRW8.73bn (US$6.5m). Compared with the second quarter, net income fell 61.4 per cent from KRW18.02bn (US$13.4m). Revenue declined 8.9 per cent, while operating profit dropped 53.8 per cent.
Operating expenses increased across several categories during the quarter. The cost of sales rose 8 per cent year-on-year to KRW89.96bn (US$66.8m), while selling, general and administrative expenses climbed 15.5 per cent to KRW10.09bn (US$7.5m). Finance costs rose to KRW2.99bn (US$2.2m), from KRW285m (US$211,000) in the corresponding period last year. The increase in expenses contributed to a weaker operating margin, which narrowed to 8.8 per cent, compared with 15.8 per cent a year earlier.
For the first nine months of 2026, GKL’s revenue reached KRW340.78bn (US$252.8m), up 6.4 per cent from the same period last year. Despite the increase, operating profit fell 9.1 per cent to KRW48.61bn (US$36.1m), while net income dropped 16.1 per cent to KRW40.06bn (US$29.7m). The company’s casino drop increased 9.5 per cent year-on-year to KRW2.97tn (US$2.2bn) while casino net sales rose 5.8 per cent to KRW337.2bn (US$250.1m).
GKL operates three foreigner-only casinos under its Seven Luck brand, with two properties in Seoul and one in Busan. The company is a subsidiary of the Korea Tourism Organization, which is affiliated with South Korea’s Ministry of Culture, Sports and Tourism.
