In November, Grand Korea Leisure, the South Korean foreigner-only casino operator, reported casino sales of KRW27.9 billion (US$21.2 million), indicating a 1.1% year-on-year decrease and a 2.6% decline compared to October. This comprehensive analysis delves into the key aspects of the report, shedding light on table game sales, machine sales, the cumulative performance for the first 11 months of 2023, and comparisons with other industry players.
Monthly Performance Overview:
The November figures reveal a nuanced picture, with overall casino sales dipping by 1.1% year-on-year and 2.6% compared to the previous month. A breakdown of the monthly results shows table game sales at KRW24.9 billion (US$18.9 million), reflecting a 2.6% month-on-month decrease. Machine sales also experienced a decline, totaling KRW3.01 billion (US$2.3 million), down by 3.2%.
Year-to-Date Comparison:
Despite the November dip, the cumulative casino sales for the first 11 months of 2023 reached an impressive KRW362.4 billion (US$276 million), marking a substantial 54.5% increase compared to the same period last year. This positive trajectory suggests resilience and growth within the foreigner-only casino sector, showcasing its ability to navigate challenges and capitalize on opportunities.
Monthly Drop and Year-on-Year Trends:
The November drop of KRW277.2 billion (US$211 million) indicates a 10.8% decrease compared to October but showcases an 8.3% year-on-year growth. This dynamic trend underscores the industry’s adaptability and highlights the resilience of Grand Korea Leisure in maintaining positive year-on-year performance despite monthly fluctuations.
Table Drop Analysis:
Table drop, a key metric in the casino industry, stood at KRW3.03 trillion (US$2.3 billion) for the 11 months through November. This figure provides insights into the volume of cash and chips exchanged at the tables, offering a comprehensive view of player activity. The steady growth in table drop emphasizes sustained engagement and patronage throughout the year.
Industry Landscape:
Grand Korea Leisure operates three casinos in South Korea, strategically located in Seoul and Busan under the Seven Luck brand. While the November performance reflects a marginal decline, it is essential to consider the broader context of the industry. Fellow foreigner-only casino operators Paradise Co and Lotte Tour also reported small declines in casino sales for the same period, suggesting industry-wide dynamics at play.
Grand Korea Leisure’s November casino performance provides a detailed snapshot of the foreigner-only casino sector in South Korea. Despite monthly fluctuations, the industry has demonstrated robust year-on-year growth, showcasing its resilience and adaptability. As the year concludes, the strategic positioning of Grand Korea Leisure and its counterparts in the market will be pivotal in navigating the evolving landscape and sustaining positive momentum in the months ahead.