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Euro-zone crisis hits GuocoLeisure

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Tue, 07 Feb 2012 10:35a.m.

Sales fell 5.2 percent (file)

Sales fell 5.2 percent (file)

Singapore-listed GuocoLeisure, once known as Brierley Investments, has posted a decline in first-half sales and a drop in revenue from its UK-based Clermont Leisure casinos.

Sales fell 5.2 percent to $227.3 million in the six months ended December 31, the company said.

Net profit rose 2.2 percent to $43.9 million, helped by reimbursement of expenses from settlement of a dispute of its Bass Strait oil and gas royalty.

GuocoLeisure's biggest assets are its Guoman Hotels chain in the UK, which grew out of the Thistle Hotels group originally acquired when the company was Brierley.

Revenue from its hotels gained 2.3 percent though "volatility in the gaming sector affected overall revenue performance", the company said.

"The continuing uncertainty in Europe, especially with regard to the sovereign debt crisis in the eurozone, has adversely affected business sentiment, particularly in the hospitality business in the UK," the company said.

"The group remains cautious about the business outlook for the rest of the year."

Revenue from Bass Strait jumped 40 percent to $37.1 million as a result of higher prices for oil and gas. GuocoLeisure also received a one-off royalty distribution of $6.5 million from resolution of its dispute.

NZN

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