South Korean casino operator Grand Korea Leisure (GKL) turned in a mixed bag of results in the second quarter of 2015.
Net income in the three months ending June 30 was KRW 18.54b (US $16m), nearly twice the sum earned in the same period a year ago as revenue rose 4.9% to KRW 122.4b. But profit was down 42.4% from the first quarter of 2015 as revenue tumbled nearly 18%. For the first half of 2015, GKL’s profit is up 8.2% to KRW 50.7b.
The sequential decline can be blamed on a number of factors, particularly the outbreak in June of Middle Eastern Respiratory Syndrome (MERS) that has done such damage to the country’s tourism industry. Efforts by China to stem the flow of its citizens heading to South Korean casinos hasn’t helped.
GKL operates two of the country’s 16 foreigners-only casinos; two in Seoul and one in Busan, under the Seven Luck Casino brand. According to the South Korean Casino Association, GKL’s share of the country’s casino market rose 2.6 points to 37.2% in Q2.