Grand Korea Leisure able to turn things around in July

Grand Korea Leisure able to turn things around in July

Grand Korea Leisure Co. Ltd. (GKL) has been in somewhat of a funk lately, with first-quarter performance 50% lower than what it was last year. Before the end of the first half, though, it began to see a little bit of light at the end of the tunnel and that light has just gotten a lot brighter. When it announced its financial health for July, GKL was able to report an increase in sales of 11.4% year-on-year as it reached $33.8 million. That was also a 5.5% increase over June’s performance.

former-miccosukee-resort-gaming-employees-charged-5-million-theftTable game sales climbed 11.3% in July, according to a filing by the company with the Korea Stock Exchange. GKL picked up just over $30 million from the segment, with machine game sales also jumping 12.1% to $3.93 million. The company didn’t offer an explanation for the increase, but will certainly look to repeat it this month, as well.

GKL is run by the Korea Tourism Organization, a government-led entity under the country’s Ministry of Culture, Sports and Tourism. It operates three casinos in South Korea – all only open to foreigners – under the Seven Luck brand, with two located in Seoul and the third in Busan on the southern coast.

The July boost helped to offset the first-half red ink but wasn’t enough to put it in the black. Casino sales for the first seven months of the year have fallen 3.1% compared to the same period last year, coming in at $220.68 million. That figure includes a 4.1% decrease in table game sales, which provided $192.11 million, and an increase of 4.4% in machine game sales to $28.57 million.

GKL’s July performance was similar to that of rival Paradise Co. Ltd. However, Paradise has seen better increases across the board, which will continue to threaten the competition. According to a filing by the company this past Monday, revenue at Paradise increased by 3.2% from June to July, reaching $61.26 million. This also reflects a 19.1% increase over July 2018.

Perhaps GKL’s new CEO, Yoo Tae-Yeol, is finally making some progress in improving the company. He was brought in a year ago to shake things up and is perhaps now able to make that happen.