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GL Limited reports lower profit for Q2
PROPERTY group GL Limited reported a 32 per cent year on year slide in net profit to US$13.6 million for the second quarter ended 31 Dec 2016.
Revenue was 24 per cent lower at US$86.7 million while earnings per share fell to 1.1 US cents, down from 1.6 US cents a year ago.
For the half year period, net profit dropped 52 per cent to US$24.6 million and revenue decreased 20 per cent to US$184.5 million mainly due to lower revenue generated from the hotel, gaming and property development segments.
"The recent volatility in the UK hotel industry is expected to remain in the months ahead," warned the group. "In spite of such volatility, our hotel revenue per available room (RevPAR) for the half year improved by 3 per cent on the back of a 5 per cent improvement in average room rate. The weakness in the British pound could provide a boost for inbound travel into the United Kingdom, but at the same time adversely impact our hotel division's revenue growth and the carrying value of our hotel properties in USD terms."
It added that the group will continue with its hotel refurbishment programme and expects to launch three refurbished hotels in the next year, while maintaining a cautious outlook.
Meanwhile, it said the price of oil will continue to impact its oil and gas royalty revenue but highlighted that oil prices have recovered from the lows of the previous financial year.