UOL reports 19% drop in Q2 net profit

UOL Group has booked a net profit of about S$171.68 million for the second quarter ended 30 June 2012, down by 19 per cent compared to the previous year.

In a filing to the Singapore Exchange (SGX), UOL attributed the decline mainly to lower income from property development sales and lower fair value gains from investment properties.

During the quarter, UOL recorded a 34 per cent on-year drop in revenue to S$298.84 million.

The dip in revenue was due to lower revenues from property development and dividend income from available-for-sale financial assets.

For the first six months of the year, UOL posted a 42 per cent on-year decline in net profit to S$255.68 million.

Meanwhile, revenue for the first half of the year fell 49 per cent to about S$596.58 million, when compared against the previous year.

On the outlook ahead, UOL expects demand for new homes in the mass market segment to remain stable in view of the high liquidity and low interest rates.

However, it notes that the uncertain global economic outlook will continue to put pressure on office rents.

On retail rents, UOL said they are expected to remain resilient, underpinned by higher visitor arrivals and healthy consumer spending.

While the introduction of new attractions is expected to draw more visitors to Singapore, UOL said uncertainties in the global economy will weigh on demand for hotel accommodation in the rest of the Asia Pacific region.

Source : Channel NewsAsia – 10 Aug 2012

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