Grand Korea Leisure net income jumps 76.2% in H1 2018

Grand Korea Leisure net income jumps 76.2% in H1 2018

Lady Luck smiled on South Korean casino operator Grand Korea Leisure Ltd. in the second quarter of 2018 as the company’s net income jumped 76.2 percent.

Grand Korea Leisure net income jumps 76.2% in H1 2018In a disclosure to the Korea Exchange, GKL reported net income of KRW27.2 billion (US$24.2 million) in the three months ending June 30, 2018, higher than the KRW15.42 billion ($13.76 million) bottomline it registered in the same period last year.

GKL’s Q2 revenue rose 5.9 percent to KRW116.1 billion ($103.63 million) from KRW109.7 billion ($97.9 million) in Q2 2017. However, GKL’s Q2 revenue was 4.7 percent lower than it registered in the first three months of 2018.

Operating income almost doubled to KRW34.7 billion ($30.97 million) year-on-year, according to GKL’s financial statement.

For the first half of 2018, GKL’s net income climbed 35.1 percent to KRW44.5 billion ($39.72 million) while its revenue inched up by 1.3 percent to KRW238.1 billion ($212.53 million) year-on-year.

GKL, which runs three foreigner-only casinos in South Korea under the Seven Luck brand, earlier reported that its casino sales reached KRW238.62 billion ($214.2 million) in the first six months of the year, higher than the KRW229.42 billion ($205.2 million) it posted during the same period in 2017.

Table games remain robust in GKL casinos, growing by as much as 7.4 percent to KRW209.75 billion ($187.71 million). However, GKL’s earnings from slot machines fell by 14.9 percent to KRW28.86 billion ($25.83 million).

South Korea’s second largest foreigners-only casino operator did not provide any explanation why its net income accelerated in the second quarter of 2018. However, investors believed that the rise had to do with a lower base comparison from last year.

GKL’s Q2 2017 was battered by Beijing’s decision to restrict Chinese group tours to Korea to protest the deployment of a US missile system on Korean soil.

Meanwhile, GKL also announced that its July casino sales dropped 25.4 percent to nearly KRW36.9 billion ($32.93 million).