Grand Korea Leisure has turned in its unaudited financial reports for the full year 2020, headlined by the fact that it had a consolidated operating loss of KRW88.8 billion (US$79.9 million) in the year of the coronavirus, a sharp reversal from the state-run company’s fortunes before the pandemic.
Operating losses in the fourth quarter of last year came to KRW52.7 billion, capping three straight quarters of losses.
Overall casino sales for 2020 reached only KRW202.5 billion, which was down 63.3 percent year-on-year. The fourth quarter was the company’s worst, with only 17.4 billion in sales.
GKL explained in a filing that “sales and profits declined due to business closures and restrictions on entry to major customers due to the impact of the novel coronavirus infection.”
As a result of the latest and so far most intense Covid-19 wave in South Korea, GKL suspended operations at its two Seoul casinos on November 24, following suit with its Busan casino on December 1. The latest word is that these facilities may open at the beginning of next week.
This Dossier results from the “Life After POGOs” editorial project by Asia Gaming Brief which culminated with a pop-up digital forum on 9th December to discuss potentials ramifications in the industry.
The Hong Kong Jockey Club said the government’s decision to allow extra simulcast days during the summer racing lull will help curb the illegal gambling that has threatened to undercut its revenue in recent years.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.