UOL's Q1 net profit rises 4% to S$77m

UOL Group has posted a 4 per cent increase in net profit to S$77.08 million for the first quarter ended March 31, 2016. Revenue rose 39 per cent to S$330.12 million.

The group attributed the higher net profit mainly to higher revenue contribution from ongoing as well as new property development projects.

Share of profit from associated and joint-venture companies slipped 12 per cent to S$34.1 million, mainly due to the absence of contribution from the Archipelago condo project next to Bedok Reservoir Park, which is a joint venture with United Industrial Corporation.

Archipelago was completed in September 2015.

UOL noted that the outlook for the Singapore residential property market is expected to remain sluggish. Rents for office space will continue to face pressure with a large supply coming on in the second half of this year, while retail rents will be subdued as retailers consolidate their operations in an increasingly challenging market. The hospitality business in the Asia Pacific is expected to remain competitive given weak global economic growth.

UOL's earnings per share inched up to 9.68 Singapore cents in Q1 FY2016 from 9.43 Singapore cents in Q1 FY2015. Net asset value per share rose to S$9.95 as at end-March 2016 from S$9.91 as at end-December 2015.

The counter closed six Singapore cents higher at S$5.67 on Thursday.