reporter2
12-08-12, 02:05
http://www.businesstimes.com.sg/archive/saturday/premium/companies/others/uol-posts-19-drop-q2-net-profit
Published August 11, 2012
UOL posts 19% drop in Q2 net profit
By Mindy Tan
http://www.businesstimes.com.sg/archive/saturday/sites/businesstimes.com.sg/files/imagecache/image_300x200/BT_20120811_MTUOL11_109802.jpg
IN THE PIPELINE
The 363-room Parkroyal on Pickering is scheduled to open towards the end of the year - PHOTO: WOHA
UOL Group posted a 19 per cent year-on-year drop in net profit for the second quarter ended June to $171.7 million, dragged down by lower income from property development sales and reduced fair-value gains from investment properties.
Revenue fell 34 per cent to $298.8 million, largely as a result of a 51 per cent slide in revenue due to the completion of development projects in 2011 and Q1 2012. Dividend income from available-for-sale financial assets, too, dropped 16 per cent to $15.8 million.
But revenue from property investments rose 5 per cent to $41.3 million while revenue from hotel ownership and operations went up 2 per cent to $89.5 million.
The group's bottom line was also hit by a 29 per cent fall in share of profits from associated companies to $23.5 million, stemming from lower contribution from United Industrial Corporation Limited.
Said UOL Group CEO Gwee Lian Kheng: "We remain cautious in our outlook for the second half due to a weak US recovery, uncertainties in the Europe situation, and the slowing growth engines in Asia. We expect demand for new homes in the mass- and mid-market segment to remain stable, supported by high liquidity and low interest rates."
UVD Pte Ltd, a joint-venture company held by UOL and Singapore Land, yesterday was awarded the tender for a 99-year land parcel at Bright Hill Drive. UVD intends to build a 20-storey, 420-unit condominium, capitalising on the unblocked views of MacRitchie Reservoir and the Singapore Island Country Club.
The group's gearing stood at 0.33 as at June 30, down slightly from 0.35 in December, mainly due to the effects of an increase in total equity.
Separately, UOL subsidiary Pan Pacific Holdings Group said its net profit rose by $10.2 million, or 136 per cent, to $17.8 million. Q2 revenue was $88.2 million, on par with the $88.1 million achieved a year earlier.
For the six months ended June, net profit rose 94 per cent year-on-year to $35 million while revenue rose 11 per cent to $184.9 million.
"Tourist arrivals grew by 12.3 per cent year-on-year for the first five months. The introduction of new attractions is expected to draw more visitors which will benefit our hotel portfolio in Singapore," said Mr Gwee.
The 363-room Parkroyal on Pickering and the 13-storey One Upper Pickering office building are scheduled to open towards year-end, while Pan Pacific Serviced Suites Beach Road will open in the first quarter of 2013.
UOL shares ended the day up 5 cents at $5.45.
Published August 11, 2012
UOL posts 19% drop in Q2 net profit
By Mindy Tan
http://www.businesstimes.com.sg/archive/saturday/sites/businesstimes.com.sg/files/imagecache/image_300x200/BT_20120811_MTUOL11_109802.jpg
IN THE PIPELINE
The 363-room Parkroyal on Pickering is scheduled to open towards the end of the year - PHOTO: WOHA
UOL Group posted a 19 per cent year-on-year drop in net profit for the second quarter ended June to $171.7 million, dragged down by lower income from property development sales and reduced fair-value gains from investment properties.
Revenue fell 34 per cent to $298.8 million, largely as a result of a 51 per cent slide in revenue due to the completion of development projects in 2011 and Q1 2012. Dividend income from available-for-sale financial assets, too, dropped 16 per cent to $15.8 million.
But revenue from property investments rose 5 per cent to $41.3 million while revenue from hotel ownership and operations went up 2 per cent to $89.5 million.
The group's bottom line was also hit by a 29 per cent fall in share of profits from associated companies to $23.5 million, stemming from lower contribution from United Industrial Corporation Limited.
Said UOL Group CEO Gwee Lian Kheng: "We remain cautious in our outlook for the second half due to a weak US recovery, uncertainties in the Europe situation, and the slowing growth engines in Asia. We expect demand for new homes in the mass- and mid-market segment to remain stable, supported by high liquidity and low interest rates."
UVD Pte Ltd, a joint-venture company held by UOL and Singapore Land, yesterday was awarded the tender for a 99-year land parcel at Bright Hill Drive. UVD intends to build a 20-storey, 420-unit condominium, capitalising on the unblocked views of MacRitchie Reservoir and the Singapore Island Country Club.
The group's gearing stood at 0.33 as at June 30, down slightly from 0.35 in December, mainly due to the effects of an increase in total equity.
Separately, UOL subsidiary Pan Pacific Holdings Group said its net profit rose by $10.2 million, or 136 per cent, to $17.8 million. Q2 revenue was $88.2 million, on par with the $88.1 million achieved a year earlier.
For the six months ended June, net profit rose 94 per cent year-on-year to $35 million while revenue rose 11 per cent to $184.9 million.
"Tourist arrivals grew by 12.3 per cent year-on-year for the first five months. The introduction of new attractions is expected to draw more visitors which will benefit our hotel portfolio in Singapore," said Mr Gwee.
The 363-room Parkroyal on Pickering and the 13-storey One Upper Pickering office building are scheduled to open towards year-end, while Pan Pacific Serviced Suites Beach Road will open in the first quarter of 2013.
UOL shares ended the day up 5 cents at $5.45.