Grand Korea Leisure Records 60% Profit Decline in Q2 2023

South Korean casino operator, Grand Korea Leisure (GKL), has unveiled that its net income in the second quarter of 2023 amounted to KRW8.58 billion (US$6.5 million). As reported by Inside Asian Gaming (IAG), the figure reached in the quarter that ended 30 June 2023 represents a 60.3% decline when compared to the prior quarter. The Q2 2023 result, however, reportedly sets off the KRW7.99 billion (US$6.1 million) loss experienced over the same period in 2022.

Sales Decline:

The same source reports that the company’s sales in the given period reached the level of KRW100.2 billion (US$76.0 million), which is 8.2% lower performance than Q1. Still, the second quarter of 2023 was reportedly 109% stronger than the second quarter of 2022 across the company’s three properties in Seoul and Busan run under the Seven Luck brand. As GGRAsia reports, Grand Korea Leisure is a subsidiary of the Korea Tourism Organization, which is governed by the South Korea’s Ministry of Culture, Sports and Tourism.

IAG reports that the operator generated KRW90.6 billion (US$68.7 million) in table games over the given quarter to see a 8.6% quarter-on-quarter decline while slot sales recorded a bounce of 17.5% to get to the KRW9.87 billion (US$7.5 million) post. On the other side, casino net gaming revenues reportedly increased by 10.9% to settle at the to KRW836.0 billion (US$634 million) level in the Q2 2023, while the mass table income grew by 6.8% to KRW176.7 billion (US$134 million).

VIP Segment Improved:

As reported, GKL said that the Japanese and Chinese players made a significant contribution to the operator’s handle in two casinos located in the capital of Seoul and one in Busan. They reportedly spent KRW236.1 billion (US$179 million) and, respectively, KRW159.1 billion (US$121 million) on VIP table games to help the company record a decent profit in the second quarter of 2023.

$23 Million Profit:

It means that despite the overall decline of the GKL’s net income in the Q2 having been around 60 % below the Q1 2023 figures, the operator achieved a profit of KRW30.2 billion (US$22.9 million) in the first half of the year 2023. Similar to the Q2 2023 results, the H1 2023 company’s performance compensates for the loss of KRW18.8 billion (US$14.3 million) sustained in H1 2022.

60% Lower Gross Gaming Revenues:

Also, the gross gaming revenue figures followed the net income to record a 59.6% decline on a quarter-on-quarter to KRW11.0 billion (US$8.3 million) as of 30 June 2023.

Based on the above data, Grand Korea Leisure reportedly said that it will introduce additional promotional efforts to bring more VIP casino customers from overseas to its gaming tables. As GGRAsia reports, such activities will focus on the Japanese cities of Tokyo and Osaka, as well as the customers from Taiwan, Mongolia, and Southeast Asia.