SINGAPORE (April 21): GL Limited, formerly known as GuocoLeisure, posted a 26% increase in earnings to US$4.4 million ($6.1 million) for the quarter ended March 31, from US$3.5 million a year ago.
Revenue fell 8% to US$68.4 million in 3Q, from US$74.0 million a year ago.
For the nine months ended March, earnings fells 47% to US$28.9 million, on the back of a 17% decline in revenue to US$252.9 million.
This was due mainly to lower revenue generated from hotel, gaming and property development segments.
For 9M17, hotel revenue fell 15% despite an improvement in hotel RevPAR as a result of the weakening of the British pound against the US dollar.
The gaming segment generated lower revenue as a result of lower gaming drop and win margin during the period.
Property development segment revenue was lower due to the absence of land disposal which was recognised in the previous corresponding period.
Other operating expenses in 9M17 increased to US$10.9 million, mainly due to the settlement of a legal claim against a subsidiary in the UK.
Cash and cash equivalents stood at US$52.3 million as at March 31, 2017.
Looking ahead, GL Limited says the London hospitality market is expected to return to growth in CY2017.
"The group will continue with its hotel refurbishment programme and expects to launch three refurbished hotels in the next year," it said in a filing to SGX on Friday.
Meanwhile, GL Limited says oil prices, which have recovered from the lows of 2016, will continue to impact the group's oil and gas royalty revenues.
Shares of GL Limited closed half a cent lower at 77.5 cents.