GKL posts 52.6% drop in Q3 net income to US$5.2M as costs rise

Grand Korea Leisure Co Ltd (GKL) reported a net income of KRW6.95 billion (US$5.2 million) for the third quarter, a 52.6% year‑on‑year decline and a 61.4% fall versus the prior quarter, in preliminary results filed with the Korea Exchange on 10 November 2026. Consolidated revenue for the three months to 30 September was KRW109.67 billion, up 0.3% year‑on‑year but down 8.9% sequentially.

Operating results and margins

Operating profit fell 44.4% year‑on‑year to KRW9.62 billion and was down 53.8% versus the previous quarter. The operating margin compressed to 8.8%, from 15.8% in the same period last year and 17.3% in Q2. The company attributes the margin squeeze to higher cost of sales and operating expenses.

Rising costs and financial charges

Cost of sales rose 8.0% year‑on‑year to KRW89.96 billion, driven by higher pay, employee benefits and sales promotion expenses, the company said on Tuesday. Selling, general and administrative (SG&A) expenses increased 15.5% to KRW10.09 billion. Financial costs rose to KRW2.99 billion from KRW285 million a year earlier.

Casino business performance

GKL's casino net sales for the quarter were KRW134.64 billion, down 1.4% year‑on‑year and 10.9% from Q2. After deductions for casino losses and provisions and after adding foreign exchange gains, consolidated revenue came to KRW109.67 billion.

For the nine months to 30 September 2026, consolidated revenue rose 6.4% year‑on‑year to KRW340.78 billion, while cumulative operating profit fell 9.1% to KRW48.61 billion and cumulative net income declined 16.1% to KRW40.06 billion.

Activity indicators

Cumulative "casino drop" grew 9.5% year‑on‑year to KRW2.97 trillion in the nine months to 30 September. Casino net sales rose 5.8% to KRW337.2 billion, with hold moderating to 11.3% from 11.7% a year earlier. Gangnam COEX saw drop increase 17.7% to KRW1.75 trillion and its casino net sales rose 4.0% to KRW164.6 billion.

Grand Korea Leisure operates three foreigner‑only casinos under the Seven Luck brand — two in Seoul and one in Busan — and is a subsidiary of Korea Tourism Organization, which reports to the Ministry of Culture, Sports and Tourism. More details are in the presentation and the file submitted to the Korea Exchange.