UOL's net profit soars 78% to $121.8m

Thanks to strong contributions from Principal Garden.

UOL Group announced a strong set of results for the past quarter ending in June, with net profit soaring 78% to 121.8m.

This came with net attributable profit climbing up 59% to $109.4m. According to the group, this is due mainly to the higher progressive recognition of revenue from Principal Garden, a condominium project in Singapore, a higher share of profit from associated companies and fair value gains on investment properties.

Attributable fair value gains and other gains totalled $9.2m against $21.5m losses in the previous corresponding quarter caused substantially by the increase in valuation of Novena Square and United Square.

Group revenue rose 10% to $399.1m in the second quarter. Property development, which accounted for 55% of Group revenue, posted a robust 19% increase to $221.2m. Besides Principal Garden, other projects which contributed to Group revenue included Botanique at Bartley and Riverbank@Fernvale.

Meanwhile, revenue from investment properties edged up two per cent to $56.4m and included rental from 110 High Holborn in midtown London, which UOL acquired in June 2016. The Group’s hospitality business including management services was mostly flat with the topline at $105.6m against $106.2m in the previous corresponding period.

During the quarter under review, Group expenses increased to $63.8m from $62.8m in the previous corresponding period. Marketing and distribution expenses declined by two per cent to $16.0m, finance expense increased 22% to $9.3m, whilst other operating expenses fell six per cent to $18.7m.