GGRAsia – GKL may lose US$13mln as Seoul, Busan venues shut longer

GKL may lose US$13mln as Seoul, Busan venues shut longer

Dec 07, 2020 Newsdesk Latest News, Rest of Asia, Top of the deck

Grand Korea Leisure Co Ltd (GKL), an operator in South Korea of foreigner-only casinos, said in a Monday filing that it expected to see a higher loss of sales during December, because of an extension until December 29 of precautionary anti-Covid-19 closures for its two Seoul venues and its site in Busan.

The firm said it was doing so “to prevent the spread of infectious diseases,” because Seoul was going to “Level 2.5” under South Korea’s social distancing protocols; and the southern port city of Busan was maintaining “Level 2”.

The group told the Korea Exchange it now expects lost sales due to late November-into-December temporary closures to be about KRW13.6 billion (US$12.5 million). That was based on average daily net sales from July to September, said the firm. It had previously mentioned lost sales amounting to KRW5.5 billion.

Its Seoul venues – Gangnam COEX, and Gangbuk Hilton (pictured), which had closed on November 24 and had been due to reopen on Tuesday (December 8) – will now stay shut until 9am on December 29.

Its Busan site – Busan Lotte, which had closed on December 1 and had been due back on December 15 – will now stay shuttered until 9am on December 29.

Grand Korea Leisure is a subsidiary of the Korea Tourism Organization, which in turn is affiliated to South Korea’s Ministry of Culture, Sports and Tourism.

Casino sales in November at Grand Korea Leisure fell 50.6 percent from October, to below KRW5.49 billion, and declined 87.8 percent judged year-on-year, the firm said in a Thursday filing to the Korea Exchange.

The result was a softening from October, which had seen casino sales rise 18.0 percent month-on-month, and moderate to a 69.5 percent decline judged year-on-year.

Separately in a Monday filing to the Korea Exchange, Kangwon Land Inc, operator of Kangwon Land, the only casino venue in South Korea permitted to cater to local players, said it would have close from midnight on Tuesday (December 8), with the “end date undecided”.

The reason, it added, was Level 2 social distancing rules being applied to its venue’s surrounding Jeongseon county, in the province of Gangwon-do.

The company further noted it expected to lose “approximately KRW1 billion per day” of closure, based on accumulated daily average casino sales in the third quarter this year.

(Updated 5.30pm, Dec 7)