South Korean foreigner-only casino operator Grand Korea Leisure has reported a KRW64.3 billion (US$57.9 million) loss in 2020, down a whopping KRW136.7 billion (US$123.0 million) on the profit of KRW72.4 billion (US$65.1 million) previously announced for FY19.
The company has been battered by COVID-19, with repeated closures of its Seoul and Busan casinos throughout the past 12 months including an ongoing closure of Gangnam COEX, Gangbuk Millenium Seoul Hilton and Seven Luck Casino in Busan Lotte until at least 15 February.
Both Seoul properties suspended operations on 24 November and the Busan casino on 1 December in response to rising South Korean COVID-19 numbers, which soared past 1,000 new infections per day in December.
The result was a tough Q4 for GKL, with losses of KRW32.7 billion (US$29.4 million) representing a 43.7% increase in loss compared to 3Q20.
Casino sales for FY20 fell 63.3% year-on-year to KRW202.5 billion (US$182.2 million), however the company did see a 33.2% decline in the cost of sales to KRW238.3 billion (US$214.5 million) – largely via lower comps and sales promotional expenses.
GKL said it paid KRW17.0 billion (US$15.3 million) to South Korea’s Tourism Promotion and Development fund – down 64.4% year-on-year – and KRW1.7 billion (US$1.5 million) in Individual Consumption Tax, an 88.4% decline.