Korean operators calculating business suspension losses

With the decision to suspend business operations until April 6, some South Korean operators have begun to release estimates of the losses they are facing as a result.

Grand Korea Leisure, which operates three foreigner-only casinos in Seoul and Busan, estimates a sales loss of KRW17.5 billion (US$14.4 million) as a result of its two-week closure, basing the figure on the daily average of total casino sales in 2019.

In January and February, Grand Korea Leisure was actually posting very strong results, KRW48.9 billion for the two-month period, which was up 48 percent on the 2019 figures.

However, even had the doors remained open, these casinos, being foreigner-only facilities, were looking at a 90 percent drop in customer traffic in any case.

Grand Korea Leisure employs over 1,800 people, including the head office and casino staff, of which about 80 percent have now been put on paid leave.

Meanwhile, Kangwon Land, which closed its doors on February 23 and is also currently scheduled to reopen on April 6, is calculating a KRW15.8 billion sales loss over the extended shutdown.

In the case of this casino, based in rural Gangwon Province and the nation’s only casino that can serve South Korean gamblers, it is not only the company itself, but also the surrounding community that is suffering from the closure. Many local businesses have depended on Kangwon Land and the tourists it draws for their own revenues.

SHARE
Previous articleJumbo to launch 20th anniversary products
Next articleSuncity gains shareholder approval for Manila investment

Related Articles

Jeju casinos at highest risk from Covid-19 downturn

South Korea’s three major operators are likely to come through the economic downturn caused by the Covid-19 pandemic without too much difficulty, but the smaller and weaker operators on the island of Jeju may face a much tougher time, analysts say.

GKL operating losses to continue through end of year: Analyst

Kim Hyun-yong, a researcher at Hyundai Motor Securities, explained to the local media that there was little chance for Grand Korea Leisure, which depends on foreign patrons for its casinos, could reach the break-even point this year, and that operating losses will continue.
GKL September sales down over 76 percent

GKL September sales down over 76 percent

Grand Korea Leisure has reported September sales at KRW9.4 billion (US$8.1 million), a figure that was down over 76 percent from the 2019 numbers. Of the firm’s three locations, the Seoul Hilton Casino turned in the best results with KRW5.3 billion, down nearly 74 percent, slightly better than the Seoul Gangnam Casino which saw its […]
National Pension Service stake in GKL falls below 10 percent

National Pension Service stake in GKL falls below 10 percent

South Korea’s National Pension Service has been reducing its stake in Grand Korea Leisure, a movement attributed to concerns that Covid-19 will exercise a long-term impact on GKL’s ability to generate profits. Since the beginning of April, public disclosures revealed that the NPS stake in GKL has been reduced from 13.05 percent to 9.93 percent, […]
GKL-Kangwon Land agreement on personnel exchanges

GKL-Kangwon Land agreement on personnel exchanges

Grand Korea Leisure and Kangwon Land, both of them government operated enterprises, have entered into an agreement on the limited exchange of personnel as part of the government’s strategy to cultivate its human resources. The agreement will launch from a modest level, with only one employee from each organization being dispatched to the other for […]

GKL August revenue heads south again

Grand Korea Leisure saw its sales drop again in August from the prior month after showing signs of a month-on-month improvement in July.

Major Korean casino firms book substantial Q2 losses

All three of the major South Korean casino operators booked substantial financial losses in the April-June period as a result of Covid-19. Kangwon Land, which operates the only casino in the nation at which locals may gamble, but which had a very long business suspension period, recorded sales of only 34.6 billion won (US$29.1 million), […]

Grand Korea Leisure reports July sales down 65 percent year-on-year

State-backed Grand Korea Leisure has reported KRW14.2 billion (US$11.9 million) in total sales for the month of July. This compared to KRW41.1 billion in the same period in 2019, representing a 65 percent year-on-year decrease. However, compared to the KRW12.5 billion recorded in June, the sales figure represented a recovery of 13.6 percent. By location, […]

GKL June sales rise 20% from May

Grand Korea Leisure saw casino sales in June rise 20.5 percent from the prior month, boosted by revenue from table games, although they showed a drop of 68 percent from the prior year.

Grand Korea Leisure records zero sales for April

Grand Korea Leisure has recorded zero sales for the month of April and a year-on-year decline of 73.7 percent in sales for the month of May. The May sales came in at 10.3 billion (US$8.7 million). Due to the coronavirus, all of the company’s facilities were closed from March 24 to May 6. Grand Korea […]