GuocoLeisure’s net profit up 8.1% to $19.9m in Q2

Thanks to its stable hotel revenue.

GuocoLeisure reported that its net profit climbed 8.1% on-year to $19.9m (USD14.7m) for the second quarter. , r

GuocoLeisure’s headline revenue was 6.7% lower due to a drop in non-core gaming revenue. However, revenue for the hotel division was stable year-on-year.

According to OSK DMG, GLL is expected to outperform the industry over the next 1-2 years as its hotel transformation effort and re-branding strategy takes shape.

“GLL has completed the re-financing of its high-cost bonds in December last year, with annual savings of some USD14m flowing through from next quarter onwards. The recent sharp decline in oil prices is expected to impact its cash flow from Bass Straits going forward, although this is partially mitigated by higher gas prices and production. We continue to like the stock as a turnaround play as the group re-focus on its core hotel business and divest non-core assets,” stated OSK DMG.