Published September 2, 2008
GuocoLeisure net profit quadruples to US$56.7m
By CHOW PENN NEE

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GuocoLeisure's net profit more than quadrupled to US$56.7 million for the year ended June 30, 2008, from US$12.6 million the preceding financial year, thanks to a host of factors. The investment group, previously known as BIL International, cited the following factors: higher revenue, royalty distribution, gain on sale of investment and higher management and other one-off fees in the hotel operations.
Revenue rose 25.2 per cent to US$529.3 million due to growth from its hotel operations, gaming business and improved sales of properties from its operations in Fiji, it said.
On royalty distribution, the group said: 'With the expiry and redemption of the ordinary units in the Bass Strait Oil Trust in July 2007, the group has since been entitled to the full royalty distribution from this trust. This, alongside higher oil and gas prices, have contributed to the increase in royalty income.' For the year, royalty rose to US$44.4 million from US$21.4 million. GuocoLeisure also benefited from a US$3.5 million gain from the sale of an investment.
Higher management fees and other one-time fees in hotel operations also rose, with 'other operating income' rising to US$26.3 million from US$19.1 million.
For the year, earnings per share were 4.2 US cents compared with 0.9 US cents the preceding year. Operating expenses for the year were higher due to restructuring, marketing and promotion.
On the outlook for the year, GuocoLeisure said in a statement yesterday that 'the prevailing uncertain global economic conditions remain to be relevant factors that may affect the group's ongoing operational performance'. It added: 'Subject to these and other unforeseen external factors, we are not aware of any known factors that may affect the group in the next 12 months.'
GuocoLeisure, whose executive chairman is Malaysian tycoon Quek Leng Chan, and which is a unit of Hong Kong-listed Guoco Group - has declared a first and final dividend of 2.5 Singapore cents per share. GuocoLeisure shares yesterday closed at 66 cents, up half a cent.