UOL’s net profit plummets 55% to $68.8m in 2Q16

Blame it on fair value losses on investment properties.

Despite the rise in revenue in its property development and hospitality businesses, UOL Group Limited’s net attributable profit collapsed 55% to $68.8 million at the end of the second quarter.

The property company declared in a release that the deep slip was due largely to fair value losses on investment properties.

Attributable fair value losses and other losses totalled $21.5 million against $53.8 million gain in the previous corresponding quarter.

The group’s revenue rose 6% to $363.6 million from a year ago that was made possible through higher progressive revenue recognition from on-going projects such as Riverbank@Fernvale, Seventy Saint Patrick’s, Botanique at Bartley as well as Principal Garden.

Revenue from the property development increased 14% to $185.5 million in 2Q16, while revenue in the hospitality business inched up only 3% to $101.1 million.