UOL's Q3 Net Profit Up 14%

Source : The Business Times, November 5, 2008

UOL Group Limited on Wednesday said its net profit for the third quarter ended September 30, 2008 rose 14 per cent to S$73.54 million.

The share of profit of associated companies was higher in the third quarter of 2008.

The increase was attributed to the share ofprogressive recognition of profit from the sale of units in one north residences and Nassim Park Residences and better performanceby Marina Centre Holdings Pte Ltd which owns Marina Square.

Turnover rose 61 per cent to S$267.85 million.

The increase in revenue came largely from the progressive recognition of revenues from the sale of thegroup's development properties including those from Panorama and Breeze by the East which were launched earlier this year.

Revenue from property investments also improved due to higher average rental rates for the group's investment properties andcontribution from the Pan Pacific Serviced Suites which opened in April 2008.

The group saw an increase in borrowings which was used principally for the purchase of the land parcel at Simei Street 4 and the property at Spottiswoode Park Road. As a result, the group's net debt equity ratio increased from 23 per cent as at 31 December 2007 to 40 per cent as at 30 September 2008.