HOTEL and property group UOL said net profit for the third quarter of 2007 increased by 105 per cent to $64.5 million from $31.5 million a year ago, boosted by higher income from hotel operations, property investment, property development and associated companies, in addition to an exceptional gain.Revenue in the third quarter increased 11 per cent to $166.7 million, largely from the improved performance of the group's hotels in Singapore, Australia and Vietnam. Revenue from property development was also higher with the progressive recognition of revenue from the sale of units in projects like Pavilion 11, Southbank, Regency at Tiong Bahru and Duchess Residences.
Exceptional items included the recognition in the income statement of negative goodwill arising from the acquisition of a subsidiary company, UOL said.
Earnings per share rose to 8.11 cents from 3.97 cents.
Group net profit for the nine months ended September 2007 increased to $426.8 million from $107.7 million a year ago.
UOL's listed unit, Hotel Plaza, reported net profit of $14.1 million in the third quarter of 2007, up from $6.0 million in the previous period.
Hotel Plaza also announced a renounceable non-underwritten rights issue of up to 200 million new shares at an issue price of $1.70 for each rights share. The rights shares will be issued on the basis of one rights share for every two existing shares held.
The issue price represents a discount of approximately 20 per cent to the closing share price of Hotel Plaza shares yesterday.
The net proceeds of the rights issue are expected to be about $339.7 million.
Hotel Plaza said it intends to utilise the net proceeds to partially fund, up to $180 million, the acquisition and development of a land parcel at Upper Pickering Street. The balance will be used to repay advances from parent UOL.
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