SINGAPORE (Oct 19): GL Limited, formerly known as GuocoLeisure, reported a 58% increase in earnings to US$17.4 million ($23.6 million) for the 1Q ended September, from US$11.0 million a year ago.
This was mainly due the absence of other operating expenses for a one-off provision for a legal claim against a subsidiary in the UK in 1Q17. GL did not record any other operating expenses in 1Q18, compared to other operating expenses of US$8.5 million incurred a year ago.
Revenue in 1Q18 was stable at US98.0 million, compared to US$97.8 million a year ago.
This was due to higher hotel revenue, on the back of higher F&B, meetings and events revenue as well as overall improvement in room revenue from hotels other than Cumberland Hotel, which underwent refurbishment during the quarter.
The improvement was partially offset by lower revenue generated from its gaming segment as well as lower income from Bass Straits oil and gas royalty.
As at end September, cash and cash equivalents stood at US$89.3 million.
Looking ahead, the group says it maintains a cautious outlook as the market is not expected to grow significantly.
“The factors continuing to affect the UK hotel industry are uncertainties over Brexit, and a higher than average projected increase in London room supply over the next year,” GL says in a filing to SGX on Thursday.
Shares in GL closed 1 cent lower at 86 cents on Thursday.
