UOL Q2 profits up 21% to $132.67m

Profits jumped due to property development and investment.

UOL popped the champagne in the second quarter of 2018 as its profits jumped 21% to $132.67m from $109.21m last year. Revenue grew by 59% to $635.45m from $399.09m last year.

According to its financial statement, revenue was boosted by UIC Group’s $295.5m contribution following its consolidation with UOL.

Excluding the effects of the consolidation, revenue from property development would have fallen 31% due to the lower progressive recognition of revenue from Principal Garden and the absence of revenue from the fully sold Riverbak@Fernvale. It was partly offset by contributions from Amber 45.

Revenue from hotel operations remained flat as the losses from the closure of Pan Pacific Orchard for redevelopment were largely replaced by new revenue from Pan Pacific Melbourne which was acquired in end July 2017.

Revenue from property investments dipped 4% due to lower revenue from OneKM mall. Meanwhile, dividend income was boosted by UOB, which declared higher ordinary and special dividends in the current quarter totalling 65 cents per share.

For the first half of the year, net profit rose by 9% to $206.49m, whilst revenue grew by 73% to $1.3b.