But revenues, profits still up
Grand Korea Leisure Co. Ltd. will “find it hard to hit its business target for 2016 due to a slower-than-expected recovery in visitor traffic and drop,” according to a note from analyst Thomas Kwon of Daiwa Securities Group Inc. Even so, Kwon added that the South Korean gaming operator could see a boost in year-on-year revenues of up to 7 percent, with operating profit up 19.6 percent over 2015.
Grand Korea had been a little more optimistic, according to GGRAsia. In a recent briefing, the group said its three foreigner-only casinos in Seoul saw an 11 percent year-on-year increase in visitors and a 14.8 percent year-on-year rise in the number of VIP gamblers. The company was confident it was seeing “a solid recovery in high rollers from Japan and China,” said Kwon, and based its sales target on that confidence.
Grand Korea expected a boost of 13 percent to KRW560 billion (US$489 million) for 2016.
Kwon believes the outcome will reflect the effect “a slow recovery in traffic from China and costs relating to casino remodeling over 2016-17.”
Shares of Grand Korea Leisure and rival Paradise Co. Ltd., which runs four foreigner-only casinos in South Korea, seesawed last week on speculation that the Mainland Chinese government might try to stem the growth of outbound tourism to South Korea as part of its “Operation Chain Break.”
