SINGAPORE (May 11): UOL Group reported an 8% fall in 1Q18 earnings ended March to $73.8 million from $80.3 million in 1Q17 a year ago.
This was mainly due to the $7.6 million amortisation and depreciation of fair value uplifts in 1Q18 under a purchase price allocation exercise when UIC was accounted as a UOL subsidiary from Sept 1, 2017.
Meanwhile, Pan Pacific Orchard took a $6.6 million accelerated depreciation charge following the decision to cease operations in the second quarter of 2018 for redevelopment.
Group pre-tax profit in 1Q18 rose 42% to $138.5 million from operations of the enlarged group.
1Q18 revenue jumped 89% to $661.0 million, from $350.7 million a year ago.
This was mainly due to additional $316.2 million revenue contribution from UIC Group and the associated and joint venture companies of UOL Group and UIC Group following the consolidation of these entities.
Revenue from property development rose 72% to $314.9 million during the quarter, while revenue from property investments more than doubled to $131.6 million, and revenue from hotel ownership and operations grew 66% to $173.5 million.
As at end March, cash and cash equivalents stood at $749.5 million.
Looking ahead, UOL says steady demand together with decreasing supply should support office rents, even as retail rents remain under pressure with competition from ecommerce.
Meanwhile, it adds that economic and political uncertainties could weigh on the London property market although leasing activities remain steady in Midtown where the group owns two properties.
At the same time, improvements in the global economic outlook should benefit the group’s hotels in the Asia Pacific though trading conditions for the group’s hotels in Myanmar and China remain challenging.
Shares of UOL closed 12 cents higher, or up 1.4%, at $8.72 on Friday.
