GKL posts 38.1 percent jump in 16Q2 profit

Casino operator Grand Korea Leisure Co Ltd (GKL) reported a 38.1 percent year-on-year increase in net income to KRW25.6 billion (US$23.1 million) in 16Q2.

According to the company’s filing to the Korea Exchange on Friday, revenue for the period was up 5.4 percent to KRW 129.0 billion, while operating income for the quarter was up 44.8 percent year-on-year to KRW 31.4 billion.

Analysts said the improved results were attributable to a low-base comparison in the prior year period

South Korean casinos hit hard times in 2015 due to an outbreak of Middle East respiratory syndrome as well as China’s crackdown on VIPs, which resulted in low tourist numbers.

According to Daiwa Securities Group’s analyst Thomas Kwon, GKL’s management said it expects stable growth in casino revenues in the second half of 2016, “on growing mass-table gamers and casual game players”.