Leisure and hospitality firm GuocoLeisure saw first-quarter net profit surge 89 per cent to US$31.4 million (S$43.2 million) on stronger takings from its gaming business and a one-off gain.
Revenue for the July to September period fell 2 per cent over the same period last year to US$115.1 million as lower average crude oil and gas prices and the fall in oil production hit the company's royalty income.
The weakening of the Australian dollar against the greenback also affected royalties, the company said.
However, this was offset by higher gaming revenue, with improved gaming drop and win margin compared with the previous corresponding quarter.
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AT A GLANCE
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NET PROFIT US$31.4 million (+89%)
REVENUE US$115.1 million (-2%)
DIVIDEND None
Hotel revenue was stable compared with the same quarter a year ago. While revenue per available room improved, this was offset by the weakening of the British pound against the greenback.
Overall hotel revenue per available room for the quarter grew 11 per cent against the same quarter last year, GuocoLeisure said.
The company also saw an increase in operating income for the quarter, due to a one-off compensation received after the termination of a hotel management contract for 19 regional Thistle Hotels owned by a third party.
Earnings per share for the quarter came in at 2.4 US cents, up from 1.3 US cents in the same period last year.
Net asset value per share was 87.9 US cents as at Sept 30, compared with 88.6 US cents as at June 30.
While the average occupancy rate for the London hotel market is not expected to change significantly in the near future, planned refurbishments of the company's hotels continue to be implemented and this will impact on rooms available for sale, GuocoLeisure said in its results announcement yesterday.
The company expects to launch the second hotel under its Amba Hotels brand by this year.
A significant decline in global oil prices coupled with a weaker Australian dollar had adversely affected the group's oil and gas royalty revenues, it said.
The company also noted that oil and gas prices are not expected to recover in the coming year.
