GuocoLeisure has registered a 29.2 per cent drop in first quarter net profit to US$16.5 million (S$20.6 million).

This was despite revenue rising 3.2 per cent to US$107.8 million for the three months to Sept 30, mainly due to higher revenue generated by the property development segment. However, volatility in the gaming sector affected overall revenue performance.

Bass Strait oil and gas royalties decreased by 5.7 per cent, due to lower average crude oil prices and lower oil production as compared to the previous corresponding quarter.

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

Other operating income decreased from US$6.5 million to US$3.5 million, due mainly to the one off compensation received from a lease termination in the hotel segment in the previous corresponding quarter.

Earnings per share fell to 1.3 US cents from 1.8 US cents previously while net asset value per share grew to 89.1 US cents compared to 83.9 US cents as of June 30.

Looking ahead, GuocoLeisure noted that London hotels are coping with the need to absorb a significant increase in new supply that came onto the market prior to the 2012 Olympic Games.

"However, London and the UK were generally seeing a return of business and leisure travel as well as experiencing early signs of economic recovery. This, along with the rebranding and transformation initiatives currently underway at the hotels, is expected to support our UK-based business."