You are here

GL Limited Q1 profit down 65% at US$11m on weaker UK hotel revenues

35_28378702 - 21_06_2013 - dollar22.jpg
PROPERTY group GL Limited, the former GuocoLeisure, said net profit for its first quarter ended Sept 30 was US$11 million, down 65 per cent from US$31.4 million a year ago.

PROPERTY group GL Limited, the former GuocoLeisure, said net profit for its first quarter ended Sept 30 was US$11 million, down 65 per cent from US$31.4 million a year ago.

Revenue was down 15 per cent to US$97.8 million from US$115.1 million a year ago. Lower revenue was mainly due to its hotel and gaming segments, and was also due to a weaker sterling. GL operates hotels in London, owns a private gaming club, and also receives oil and gas royalties. Its oil and gas segment recorded higher revenue for the quarter.

There were other operating expenses of US$8.5 million in the quarter, mainly due to the provision for a legal claim against a UK subsidiary which provided a guarantee for a hotel property previously leased and operated by another subsidiary.

Looking ahead, GL said that while the weak British pound could boost travel to the UK, there will be a negative translation effect for its financial statements.

sentifi.com

Market voices on:

"The group will continue with its hotel refurbishment programme and expects to launch three refurbished hotels in the next year, and maintains a cautious outlook," it said.

GL last traded at S$0.79, down a cent, before results were out.

Powered by GET.comGetCom