GKL announces first interim dividend since pandemic

Aug 12, 2024 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Grand Korea Leisure Co Ltd (GKL), an operator in South Korea of foreigner-only casinos, posted in the second quarter a 11.0 percent sequential increase in net profit attributable to the shareholders, and a 31.9 percent increase judged year-on-year.

Such income for the three months to June 30 was nearly KRW11.33 billion (US$8.3 million), compared to KRW10.20 billion in the first quarter.

The Korea Exchange-listed casino group said in another filing on Monday that it would pay on September 10 an interim cash dividend of KRW60.00 per share, a total payout of KRW3.71 billion.

The firm said in a separate presentation that it was paying an interim dividend “for the first time in four years,” i.e., since financial year 2019, the period immediately preceding the Covid-19 pandemic.

Nonetheless, for this year’s first half, shareholder net income was actually down 28.7 percent year-on-year, at just under KRW21.53 billion

The firm did not give commentary on the reasons for the overall second quarter performance. Grand Korea Leisure runs three foreigner-only casinos in South Korea under the Seven Luck brand: two in the capital Seoul, and one in the southern port city of Busan (pictured).

The group is a subsidiary of the Korea Tourism Organization, which in turn is affiliated to South Korea’s Ministry of Culture, Sports and Tourism.

Second-quarter sales for Grand Korea Leisure were just under KRW98.83 billion, up 0.9 percent sequentially, but down 1.4 percent year-on-year.

The company said second-quarter operating income was KRW13.21 billion, down 4.6 percent from the preceding quarter, but up 20.0 percent year-on-year.

Second-quarter business margin was 13.4 percent, compared to 11.0 percent a year earlier.

The presentation deck said that total casino drop at Grand Korea Leisure for the first six months this year was nearly KRW1.86 trillion, up 16.8 percent year-on-year.

First-half casino net sales were KRW192.6 billion, down 7.4 percent year-on-year.

Visitor volume to its three properties in the first six months this year amounted to 447,941, a 38.3-percent year-on-year increase.

As of June 30, group-wide the firm operated 175 tables, 354 machine games, and 145 electronic table games terminals.

In June, Grand Korea Leisure flagged plans to shake up its business, amid regional competition.

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