Full-year profits slide 28% at GL amid lower revenue in key hotel, gaming and property segments

SINGAPORE - Investment holding company GL, which has dealings in both hospitality and oil and gas, turned in a 28 per cent year-on-year slide in profits for the 12 months, it said on Friday (Aug 25).

Net profit was US$49 million (S$66.6 million), dropping from US$67.6 million the year before, while revenue fell 11 per cent to US$350.2 million.

The decline in turnover was due to lower revenue from hotel, gaming and property development segments.

Hotel revenue weakened as the pound slid against the greenback, while property development turnover was down due to a land disposal in the previous year.

These drops were partially offset by Bass Strait oil and gas royalties on the back of stronger energy production and a higher Australian dollar.

Earnings per share stood at 3.8 US cents, falling from 5.2 US cents previously, while net asset value was 80.8 US cents a share, a dip from 80.9 US cents before.

A dividend of 2.2 Singapore cents an ordinary share was declared, the same as the year before.

The group said it maintains a cautious outlook in Britain, where a softer pound might spur leisure spending but could weigh on US dollar carrying value of British hotel properties.

Range-bound oil prices will also take a toll on oil and gas royalty revenues, it said.

GL share closed up by half a cent, or 0.67 per cent, at 75 cents, before results were announced.