Sales at Grand Korea Leisure Co Ltd (GKL), an operator in South Korea of foreigner-only casinos, rose 329.8 percent year-on-year in the fourth quarter of 2022, to KRW92.75 billion (US$73.1 million). Fourth-quarter sales were up 24.6 percent sequentially, according a results filing to the Korea Exchange on Tuesday.
The company reported operating income of KRW5.44 billion for the three months to December 31, compared to an operating loss of nearly KRW42.29 billion in the prior-year period. Judged quarter-on-quarter, the firm’s operating i income was up 19.0 percent.
Despite the increase in sales, Grand Korea Leisure posted a net loss attributable to shareholders of KRW8.95 billion for the fourth quarter, an improvement on the KRW34.36-billion loss a year earlier. In November, the company reported net income of KRW4.97 billion for the third quarter of 2022.
The casino operator reported a net loss of KRW22.74 billion for full-year 2022, compared to a KRW113.27-billion loss in 2021. That was on a full-year sales tally that rose 208.1 percent year-on-year, to KRW262.11 billion.
In early January, Grand Korea Leisure had said 2022 casino sales had risen by nearly 200 percent year-on-year. But it clarified in an earnings presentation lodged separately on its website on Tuesday, that the company’s 2022 overheads – i.e., cost of goods sold, and selling, general and administrative expenses – went up 22.2 percent year-on-year, to KRW249.6 billion.
Grand Korea Leisure is a subsidiary of the Korea Tourism Organization, which in turn is affiliated to the Ministry of Culture, Sports and Tourism.
The company runs three foreigner-only Seven Luck-branded casinos: two in the capital Seoul, including in Gangnam (pictured), and one in the southeastern port city of Busan.
The group closed on December 30 its Seoul Gangbuk venue in the Millennium Hilton Hotel, and transferred the gaming operation to Seoul Dragon City, with effect from December 31.
(Updated Feb 15, 9.10am)
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