GGRAsia – S. Korea GKL 3Q net profit down despite sales up 2pct

S. Korea GKL 3Q net profit down despite sales up 2pct

Nov 08, 2019 Newsdesk Latest News, Rest of Asia, Top of the deck

South Korean operator of casinos Grand Korea Leisure Co Ltd (GKL) says the net profit attributable to its shareholders fell to just below KRW25.29 billion (US$21.9 million) in the third quarter of 2019, or 4.1 percent less than a year earlier.

GKL announced in writing on Friday that its third-quarter sales grew by 2.3 percent year-on-year to KRW133.36 billion. Third-quarter operating income stayed flat at just over KRW30.60 billion.

The firm did not give information on the reason for the difference between the relatively modest year-on-year increase in third-quarter sales, versus the decline in net income for the period.

GKL market rival Paradise Co Ltd reported on Thursday net income attributable to shareholders of approximately KRW34.21 billion for the three months ended September 30, up by 626.3 percent in year-on-year terms.

GKL’s net profit for the first nine months of 2019 stood at KRW54.08 billion, down 23.7 percent from the prior-year period.

The firm runs three casinos in the Seven Luck chain – two in Seoul and one in the southern Korean city of Busan – which admit only foreign gamblers. The company is a subsidiary of the South Korean government-run Korea Tourism Organization.

GKL announced on Wednesday that its casino sales for October rose by 1.0 percent year-on-year, to nearly KRW36.45 billion.