UOL Group Q1 net profit falls 5% on 'accounting reversal'

UOL Group on Friday said net profit fell 5 per cent year-on-year to S$72.36 million for the first quarter ended March 31.

This was due to an accounting reversal of S$31.9 million relating to the consolidation of United Industrial Corporation (UIC). Stripping out the accounting reversal, net profit would have increased 27 per cent to S$104.3 million, it said.

Group revenue rose 12 per cent to S$741.21 million, boosted by recognition of property development revenue from sales of Park Eleven in Shanghai as the remaining 103 of the 150 units sold as at the end of 2018 were handed over in 1Q19.

Earnings per share for the quarter under review worked out to 8.59 Singapore cents per share, down from 9.04 cents per share.

By the third quarter of this year, UOL is slated to launch two residential projects, the 56-unit MEYERHOUSE along Meyer Road, and the 1,074-unit Avenue South Residence along Silat Avenue.

UOL group chief executive Liam Wee Sin highlighted that the group is encouraged by the good sales momentum in the last two months for The Tre Ver, which is now over 70 per cent sold, adding: "We expect keen interest for Avenue South Residence which capitalises on the Greater Southern Waterfront growth story."

UOL shares closed at S$7.26 on Friday, up 12 cents.