Guocoleisure

Guocoleisure: 1QFY14 net profit slumped 29.3% y/y to US$16.4m, while revenue edged up 3.2% to US$107.8m, mainly on higher revenue from property development segment. There was a one-off gain from the sale of a casino licence by Clermont Leisure amounting to US$0.8m. However, volatility in the gaming sector affected overall revenue performance. Income from Bass Strait fell 5.7% on lower crude oil prices and lower oil production. Expenses were generally higher this quarter, resulting in the lower bottomline. Management guided that London hotels are coping with the need to absorb a significant increase in the new supply that came onto the market prior to the 2012 Olympic Games. However, there is a general increase in travel with visible signs of economic recovery. They also added that these plus current transformation initiatives is expected to support the UK based business. NAV was US 89.1₵, this translates to 0.8x P/B.