GKL Third-Quarter Net Income Falls 52.6 Percent to US$5.2 Million on Higher Costs

Grand Korea Leisure Co Ltd reported third-quarter net income of KRW6.95 billion (US$5.2 million). The figure represents a 52.6 percent decline from a year earlier and a 61.4 percent drop from the prior quarter.

Consolidated sales for the three months ended September 30 edged up 0.3 percent year-on-year to KRW109.67 billion but fell 8.9 percent sequentially. Operating income decreased 44.4 percent year-on-year to KRW9.62 billion, with the operating margin narrowing to 8.8 percent from 15.8 percent a year ago.

Cost Pressures Hit Key Line Items

The cost of sales rose 8.0 percent year-on-year to KRW89.96 billion, reflecting higher outlays for wages, employee benefits and sales promotion. Selling, general and administrative expenses increased 15.5 percent to KRW10.09 billion. Finance costs rose to KRW2.99 billion from KRW285 million in the prior-year period, according to reporting by GGRAsia.

Grand Korea Leisure operates three foreigner-only casinos under the Seven Luck brand in Seoul and Busan. The company is a subsidiary of the Korea Tourism Organization.

Nine-Month Results and Casino Metrics

For the first nine months of 2026, consolidated sales grew 6.4 percent year-on-year to KRW340.78 billion. Cumulative operating income declined 9.1 percent to KRW48.61 billion, while net income fell 16.1 percent to KRW40.06 billion.

Casino drop rose 9.5 percent to KRW2.97 trillion, though the hold ratio eased to 11.3 percent from 11.7 percent. Casino net sales increased 5.8 percent to KRW337.2 billion. The Gangnam COEX property recorded a 17.7 percent increase in drop to KRW1.75 trillion, with its net sales up 4.0 percent to KRW164.6 billion and hold ratio falling to 9.4 percent from 10.6 percent.