Sales at Martin Modern condo boost GuocoLand's Q1 earnings

PROPERTY developer GuocoLand on Thursday posted a 61 per cent increase in net profit to S$42.1 million for its first quarter ended Sept 30, on the back of a 62 per cent surge in revenue to S$272.5 million.

This was mainly due to higher progressive recognition of sales from Martin Modern condominium, it said. Earnings per share rose to 3.36 Singapore cents from 1.93 cents a year ago.

It added that share of profit of associates and joint ventures fell S$7.5 million to S$6 million due to lower share of profit from its Shanghai joint venture, as well as share of losses from a joint venture in Singapore which had incurred cost for the development project but no revenue was recognised in the quarter.

Also on Thursday, GL Limited (formerly GuocoLeisure) posted a 26 per cent drop in net profit to US$12 million, while revenue stayed flat at US$95.5 million in Q1.

This came as hotel revenue was higher year-on-year, driven by improved revenue per available room during the quarter, as well as contribution from the newly-launched Hard Rock Hotel London, which opened in April 2019.

However, the increase was partially offset by the weakening of the British pound against the US dollar (USD). 

There was also lower revenue from its oil and gas segment due to lower average crude oil prices and production as well as the weakening of the Australian dollar against the USD.

Both companies are majority owned by Hong Leong Co Malaysia Bhd and have common shareholders.