SINGAPORE (Aug 25): GL Limited, formerly known as GuocoLeisure, reported a 28% fall in FY17 earnings to US$49 million ($66.4 million) from US$67.6 million a year ago.
Full year revenue fell 11% to US$350.2 million from US$393.9 million due mainly to lower revenue generated by hotel, gaming and property development segments.
Cost of sales narrowed 16% to US$139.7 million mainly due to the weakening of GBP against USD and lower gaming duty associated with lower gaming revenue.
As a result, gross profit fell 7% to US$210.5 million.
Other operating income also fell 65% to US$4.6 million mainly due to a one-off compensation received from the cessation of management of 19 regional Thistle Hotels received in the previous financial year.
The 18% decrease in administrative expenses to US$129.2 million for the year was principally attributable to the weakening of GBP against USD as well as reflecting overall cost disciplines for the Group.
In its outlook, GL says the UK hotel industry has remained resilient in the light of geopolitical events and London room supply is expected to increase above its long term trend in the next 12 months.
In the global oil market, oil prices are expected to remain range-bound. This will continue to impact the group’s oil and gas royalty revenues.
Shares in GL closed at 75 cents on Friday.
