GGRAsia – S.Korea op GKL’s May sales down 45pct m-o-m to US$19mln

S.Korea op GKL’s May sales down 45pct m-o-m to US$19mln

Jun 05, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck

May’s casino sales at Grand Korea Leisure Co Ltd (GKL), an operator in South Korea of foreigner-only casinos, fell by 44.5 percent month-on-month, to just above KRW25.32 billion (US$19.3 million), the firm said in a Monday filing to the Korea Exchange. The latest monthly tally was up 39.0 percent from the prior-year period.

During May, table-game sales were just below KRW21.86 billion, down 48.2 percent sequentially, but up 35.1 percent from a year ago. Machine-game sales were KRW3.46 billion, up 2.4 percent month-on-month, and 70.6-percent higher from a year earlier.

The firm gave no commentary on the reasons for either change.

The company runs three foreigner-only Seven Luck-branded casinos: two in the capital Seoul, including in Gangnam, and one in the southeastern port city of Busan. The company is a subsidiary of the Korea Tourism Organization, which in turn is affiliated to the Ministry of Culture, Sports and Tourism.

Grand Korea Leisure’s casino sales for the first five months this year totalled KRW178.48 billion, an increase of 154.0 percent from the prior-year period.

Table-game sales were just below KRW163.24 billion in the five months to May 31, up 165.5 percent year-on-year; while machine-game sales rose by 73.3 percent, to just under KRW15.25 billion.

Grand Korea Leisure posted a net profit of nearly KRW21.60 billion for the first quarter this year, according to results published in May.

Brokerage NH Investment & Securities Co Ltd said in a memo in late May that casino business recovery in South Korea should be helped in the second half of 2023 by the return of Chinese visitors to the country, particularly mass-market customers.