GuocoLeisure reports 12.3% rise in Q2 net profit to $17.3 million

GuocoLeisure has posted a 12.3 per cent rise in second quarter net profit to US$13.7 million (S$17.3 million).

Revenue for the three months to Dec 31 was up 7.3 per cent at US$106.7 million.

However, net profit for the first six months fell by 14.9 per cent to US$30.2 million despite revenue rising by 5.2 per cent to US$214.5 million.

The higher revenue was generated by the hotel segments and property development segment as a result of improved revenue per average room (RevPAR) and land disposal respectively.

However, volatility in the gaming sector continued to affect overall revenue performance.

Bass Strait oil and gas royalties decreased by 12.5 per cent, due to lower average crude oil prices and lower oil and gas production.

Gain on disposal of investments was mainly due to the sale of a casino licence by Clermont Leisure UK.

Quarterly earnings per share grew to one US cent from 0.9 US cent previously while net asset value per share climbed to 90 US cents compared to 83.9 US cents as at June 30.

Looking ahead, GuocoLeisure said that macro-economic factors such as increases in corporate spending - which suggests growth in demand from higher paying corporate segments of the demand base - has resulted in accelerating pricing power across its London estate.

"We expect our London hotels to continue to outperform hotels in other key European cities and UK regional properties alike. February 2014 sees the start of a major refurbishment programme across 5 hotels in our London estate. In the short term, the cost of such refurbishment as well as our re-branding initiative will impact on performance," it noted.

GuocoLeisure shares eased half a cent to 85 cents. The results were announced after the market closed.