UOL Group's profit fell 5% to $72.4m in Q1

The firm’s expenses more than doubled to $182.3m.

UOL Group profits slipped 5% YoY to $72.4m in Q1 from $76m in 2018, which it attributes to a higher proportion of overseas profits with higher taxes and profits from non-controlling assets.

Its revenue rose 12% to $741.2m, driven Park Eleven property in Shanghai where 103 of the 150 units sold at the end of 2018.

Revenue from property investments grew 4% to $139.2m, due to ramped-up occupancy of UIC Building and maiden contribution from 72 Christie Street in Sydney. Hotel ownership and operations declined 6% to $163.4m, due to the closure of Pan Pacific Orchard for redevelopment, and lower revenue from the group’s hotels in Australia.

The group expenses surged 62% to $182.3m mostly due to an increase in other operating expenses from the amortisation of development property backlog of $76.4m on sold units in Park Eleven and The Clement Canopy.

UOL is scheduled to launch two residential projects, the 56-unit MEYERHOUSE along Meyer Road, and the 1,074-unit Avenue South Residence along Silat Avenue, by 3Q19.

“We expect keen interest for Avenue South Residence which capitalises on the Greater Southern Waterfront growth story,” said UOL group CEO Liam Wee Sin.