The drop in revenue was partially offset by higher progressive recognition of revenue from The Tre Ver and Amber45, as well as higher sales from the group’s management services and technology segment. Photo: UOL
UOL Group saw its net profit for the third quarter ended 30 September 2019 drop 7% to $80 million mainly due to lower profit from property development.
In Q3 2019, group revenue declined 10% to $476.6 million, on the back of lower progressive recognition of revenue from three of its development projects – namely, Principal Garden, The Clement Canopy and Botanique at Bartley, which secured temporary occupation permit in December 2018, March and April 2019 respectively.
The drop in revenue was partially offset by higher progressive recognition of revenue from The Tre Ver and Amber45, as well as higher sales from the group’s management services and technology segment.
Revenue from property development declined 34% to $109.3 million.
Revenue from property investments climbed 1% to $137.4 million, while revenue for hotel ownership and operations dipped 3% to $166.3 million mainly due to lower room rates and occupancies at PARKROYAL Darling Harbour and Marina Mandarin, as well as ongoing refurbishment works at PARKROYAL on Kitchener Road.
The group’s revenue from management services and technologies jumped 22% to $41.2 million while dividend income rose 10% $22.4 million.
Group expenses, on the other hand, grew 2% to $115.8 million.
For the nine months ended 30 September, net profit increased 19% to $347.8 million while revenue dropped 5% to $1.73 billion.
In a release, UOL noted that the Singapore residential market “has shown signs of improvement with strong underlying demand”.
It revealed that its Avenue South Residence project emerged as the top-selling project within the city-state for September, with over 400 units booked/sold since its August launch.
Previously launched projects, The Tre Ver and Amber45, were also well received with 86% and 80% of total units booked/sold respectively.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org