Kangwon Land Inc, promoter of Kangwon Land (pictured), says it resumed operations there at 10am on Monday (February 15), after more than two months of closure. The complex is the only authorised provider in that country of casino gaming to South Korean nationals.
Due to Covid-19 countermeasures, the venue operated by Kangwon Land Inc has had several suspensions of operations, beginning in 2020. The latest one commenced on December 8.
The casino reopened on Monday, as Gangwon province where the casino resort is located, went down to “Level 1.5” in terms of social-distancing rules, according to a filing that day to the Korea Exchange.
Also on Monday, Grand Korea Leisure Co Ltd, an operator in South Korea of foreigner-only casinos, said it had reopened at 9am that day its casino property in the southern port city of Busan. The group’s two gaming venues in Seoul would however remain shut at least until March 1, as the national government decided to keep the greater Seoul area under “Level 2” in terms of social-distancing measures, in a bid to stem the pandemic.
The Grand Korea Leisure sites staying shuttered until March are Gangnam COEX, and Gangbuk Hilton in Seoul, operated under the Seven Luck brand. Both venues have been closed since November 24, contributing to the group’s 2020 loss amid the pandemic.
The firm also noted in its update filing to the Korea Exchange that – as a result of the further-extended closures of its Seoul venues – it was upping its estimated loss regarding the group’s casino net sales to about KRW37.68 billion (US$34.0 million), from KRW32.58 billion previously.
Kangwon Land loss
On Monday, Kangwon Land Inc reported a nearly KRW33.33-billion loss in the fourth quarter, compared to a KRW52.62-billion profit in the prior-year quarter. The latest quarterly result was still an improvement from the KRW40.86-billion loss recorded in the third quarter of 2020.
The casino operator reported sales of KRW131.32 billion in the three months to December 31, down 64.8 percent from the prior-year period. Gross gaming revenue for the period fell by 65.5 percent year-on-year, to KRW126.4 billion, but rose 99.4 percent from the preceding quarter.
According to Monday’s presentation, Kangwon Land’s revenue from the membership club segment amounted to KRW32.6 billion in the fourth quarter of 2020, down 45.6 percent from a year earlier.
Sales in the mass table segment stood at KRW45.8 billion in the fourth quarter, a decline of 71.5 percent. Sales from slot machines were KRW48.0 billion, down 67.0 percent.
Accumulated sales for full-year 2020 fell by 68.5 percent year-on-year, to nearly KRW478.58 billion. The company booked a loss of KRW275.86 billion in 2020, compared to a profit of nearly KRW334.66 billion in 2019.
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