UOL Group’s Q1 net profit surges 674% to S$332m

UOL Group on Tuesday said its net profit surged 674 per cent to S$332 million in the first quarter this year.

It said this was due to gains of S$278 million that came about from negative goodwill after it acquired UIC shares.

UOL also attributed the performance to the lowering of the Singapore corporate tax rate to 17 per cent from 18 per cent.

Revenue also went up by 22 per cent to S$196.7 million. The group said the increase came largely from property development, with the progressive recognition of revenue from six residential projects.

It added that revenue from property investments also improved due to higher average rental rates from office space and retail shops, and increased contribution from its flagship serviced apartment property in Singapore.

The group said that although sales of lower-end residential units in the first quarter of this year were encouraging, buying sentiment remains cautious.

It also expects the global outbreak of the H1N1 flu virus to have a negative impact on the occupancy and room rates of the group’s hotels.

Source : Channel NewsAsia – 12 May 2009

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