GKL 3Q net income falls 53pct to US$5.2mln as costs rise

South Korean foreigner-only casino operator Grand Korea Leisure Co Ltd (GKL) reported third-quarter net income of KRW6.95 billion (US$5.2 million), down 52.6 percent from a year earlier and 61.4 percent sequentially. Consolidated sales for the three months to September 30 edged up 0.3 percent year-on-year to just over KRW109.67 billion, but were down 8.9 percent from the preceding quarter, according to preliminary results filed with the Korea Exchange on Tuesday. Operating income fell 44.4 percent year-on-year to KRW9.62 billion, a 53.8-percent decline sequentially. The operating margin narrowed to 8.8 percent, from 15.8 percent a year earlier and 17.3 percent in the second quarter. The cost of sales rose 8.0 percent year-on-year to KRW89.96 billion, with higher spending on wages, employee benefits and sales promotion, according to Tuesday’s announcement. Selling, general and administrative expenses increased 15.5 percent to KRW10.09 billion. Finance costs rose to KRW2.99 billion from KRW285 million a year earlier. Grand Korea Leisure runs three foreigner-only casinos in South Korea under the Seven Luck brand: two in the capital Seoul, and one in the southern port city of Busan. The group is a subsidiary of the Korea Tourism Organization, which in turn is affiliated to South Korea’s Ministry of Culture, Sports and Tourism. Grand Korea Leisure’s third-quarter casino sales fell 1.4 percent year-on-year to KRW134.64 billion, and were down 10.9 percent from the preceding quarter. Consolidated sales, after deductions for casino losses and sales allowances and including foreign-exchange income, edged up 0.3 percent year-on-year to KRW109.67 billion. For the first nine months of 2026, the casino group’s consolidated sales increased 6.4 percent year-on-year to KRW340.78 billion. Cumulative operating income fell 9.1 percent to KRW48.61 billion, while net income declined 16.1 percent to KRW40.06 billion. Casino drop – the amount customers paid to buy chips – rose 9.5 percent year-on-year to KRW2.97 trillion in the nine months to September 30, according to the casino firm’s presentation. Casino net sales rose 5.8 percent to KRW337.2 billion over the same period, as the group’s hold ratio eased to 11.3 percent from 11.7 percent a year earlier. Gangnam COEX, the group’s largest property by drop, recorded a 17.7-percent year-on-year increase in that measure, to KRW1.75 trillion in the first nine months of 2026. Its casino net sales in the period rose 4.0 percent to KRW164.6 billion, as its hold ratio fell to 9.4 percent from 10.6 percent.