Grand Korea Leisure Co Ltd (GKL), an operator in South Korea of foreigner-only casinos, reported on Tuesday a loss of almost KRW64.33 billion (US$57.6 million), versus a 2019 profit of nearly KRW72.40 billion
That was on 2020 sales that fell 62.4 percent year-on-year, to KRW184.46 billion, from KRW490.75 billion.
The group saw profit in the final quarter of 2020 turn negative by nearly KRW32.71 billion, compared to a KRW18.31-billion profit in the final three months of 2019.
Third-quarter profit had also been negative – but by a more modest amount KRW22.78 billion, meaning the sequential change was down 43.6 percent.
Grand Korea Leisure’s fourth-quarter sales were down 88.6 percent year-on-year, at KRW14.94 billion, versus KRW130.85 billion in the same period of 2019. Sales for the final quarter 2020 were down 57.0 percent relative to the third quarter’s KRW34.76 billion.
Grand Korea Leisure’s Gangnam COEX gaming venue and Gangbuk Hilton in Seoul – operated under the Seven Luck brand (pictured) – have been temporarily closed since November 24; and the group’s Busan Lotte property in the southern port city of Busan since December 1, all as Covid-19 countermeasures.
On February 1, Grand Korea extended the closure of the sites to February 15. The firm had a 43-day casino shutdown starting from March 24, last year, amid the threat of the pandemic.
GKL is a subsidiary of the Korea Tourism Organization, which in turn is affiliated to South Korea’s Ministry of Culture, Sports and Tourism.