GuocoLeisure Q2 net profit slumps 50% to US$5.5m

GUOCOLEISURE on Saturday said net profit for the second quarter to Dec 31 fell over 50 per cent to US$5.5 million, from US$11.4 million a year ago.

The hotel and resorts development company, part of Malaysia’s Hong Leong Group, said sales fell 2.2 per cent for the quarter to US$86.3 million.

For its first half, GuocoLeisure had sales of US$170.8 million, down 15.4 per cent year-on-year from US$201.8 million. Net profit fell 40 per cent to US$17.5 million from US$29.1 million in the year-ago period.

This translated to earnings per share of 1.3 US cent for the half-year and 0.4 US cent for the quarter, on a fully diluted basis.

The company said profitability was hurt by lower revenues from its gaming and property development segments, down collectively by about 80 per cent. Income from oil and gas royalty from Bass Strait fell 10 per cent due to lower production and lower average prices.

But personnel and other operating expenses also fell due to cost rationalisation efforts.

For the quarter, cash from operating activities fell in line with profits, to about US$8.3 million from US$18.3 million. The company held cash of US$11.8 million as at Dec 31.

The company said that while present global economic conditions remain weak, it is confident, barring unforeseen circumstances, that it is positioned to meet the economic challenges in the next 12 months.

Source : Business Times – 1 Feb 2010