Grand Korea Leisure reported an 8.3 percent decline in revenue for Q1, while its net profit tumbled by 34.6 percent.
The operator of the Seven Luck foreigner-only casinos posted revenue of KRW125.27 billion ($111.8 million), while its net profit dropped from KRW26.84 billion to KRW17.53 billion.
The results were hit by weaker visitation amidst simmering tensions between Beijing and Seoul. China opposes South Korea’s agreement to deploy a U.S. missile system on its territory. As a result, all tour groups from the mainland were cancelled from mid-March.
Prior to the latest political concerns, South Korea’s foreigner-only casinos had been seeing a recovery in fortunes after being hit hard in 2015 by an outbreak of Middle Eastern Respiratory Syndrome, which crippled the tourism industry.
GKL is also facing increasing competition, with rival Paradise Co. opening the country’s first real IR in Incheon last month. The project was a joint venture with Japan’s Sega Sammy.