Korean casino operator Grand Korea Leisure (GKL) reported a 2.1% year-on-year increase in sales to KRW111.51 billion and 68.3% increase in net income to KRW14.72 billion in 1Q20.
The improved results come despite GKL – which operates two foreigner-only casinos in Seoul and one in Busan under its Seven Luck brand – having closed its casinos for the last eight days of March due to COVID-19.
However, the yearly comparison is somewhat elevated given the company had recorded its lowest first quarter operating profit since 2012 last year, having at the time implemented an aggressive promotion strategy in the VIP and premium mass segments which saw a significant boost in table drop but a very negative impact on hold and margins resulting in a net decline in profits.
Compared instead to the fourth quarter of 2019, GKL’s 1Q20 sales were down 14.8% from KRW130.85 billion and net income down 19.6% from KRW18.31 billion in 4Q19.
GKL re-opened its casinos last Wednesday, having been closed for six weeks as South Korea fought to reduce the spread of COVID-19.
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