<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>May 12, 2009
</TR><!-- headline one : start --><TR>UOL sees 674% profit increase <!--10 min-->
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Elizabeth Wilmot
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"-->DEVELOPER UOL Group posted a whopping 674 per cent increase in first quarter net profit to $331.8 million on Tuesday, thanks in large part to an accounting readjustment.
Revenue was up 22 per cent to $196.7 million for the three months to Mar 31.
The bulk of the net profit was made up of an accounting item - negative goodwill. This occurs when the price paid for an acquisition is less than the value of its assets.
In UOL's case, it booked gains of $277.7 million from the acquisition of UIC shares.
Higher income flowing in from property development and investments also contributed to the increase in pre-tax profit.
The bulk of the revenue increase came from property sales, better rents for investment real estate and contributions from the Pan Pacific Serviced Suites, which opened in April last year.
The increased revenue helped offset increased marketing and distribution costs from launching Double Bay Residences. Job credits and write-back of provisions for bonuses, however, helped lower administrative expenses.
The developer boasts a wide-ranging portfolio of office, residential, retail and hospitality properties, including Nassim Park Residences, Regency Suites, United Square Shopping Mall and Faber House.
Chairman Wee Cho Yaw recently announced that the firm does not need to raise money but may consider a rights issue if it needs capital for acquisitions.
Its subsidiary, Hotel Plaza, received approval from the Urban Redevelopment Authority in February to re-use the gross floor area in The Plaza's podium block to create 273 hotel rooms.
Earnings per share was 41.68 cents, up from 5.38 cents last year while net asset value was $4.82 at Mar 31, compared with $4.26 at Dec 31. UOL shares fell two cents to $2.65 on Tuesday .
</TR><!-- headline one : start --><TR>UOL sees 674% profit increase <!--10 min-->
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Elizabeth Wilmot
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"-->DEVELOPER UOL Group posted a whopping 674 per cent increase in first quarter net profit to $331.8 million on Tuesday, thanks in large part to an accounting readjustment.
Revenue was up 22 per cent to $196.7 million for the three months to Mar 31.
The bulk of the net profit was made up of an accounting item - negative goodwill. This occurs when the price paid for an acquisition is less than the value of its assets.
In UOL's case, it booked gains of $277.7 million from the acquisition of UIC shares.
Higher income flowing in from property development and investments also contributed to the increase in pre-tax profit.
The bulk of the revenue increase came from property sales, better rents for investment real estate and contributions from the Pan Pacific Serviced Suites, which opened in April last year.
The increased revenue helped offset increased marketing and distribution costs from launching Double Bay Residences. Job credits and write-back of provisions for bonuses, however, helped lower administrative expenses.
The developer boasts a wide-ranging portfolio of office, residential, retail and hospitality properties, including Nassim Park Residences, Regency Suites, United Square Shopping Mall and Faber House.
Chairman Wee Cho Yaw recently announced that the firm does not need to raise money but may consider a rights issue if it needs capital for acquisitions.
Its subsidiary, Hotel Plaza, received approval from the Urban Redevelopment Authority in February to re-use the gross floor area in The Plaza's podium block to create 273 hotel rooms.
Earnings per share was 41.68 cents, up from 5.38 cents last year while net asset value was $4.82 at Mar 31, compared with $4.26 at Dec 31. UOL shares fell two cents to $2.65 on Tuesday .
