UOL reports trebling of FY17 earnings to $891 mil on UIC consolidation

By PC Lee / The Edge Singapore | February 28, 2018 11:00 AM SGT
SINGAPORE (Feb 27): UOL Group reported FY17 earnings trebled to $891.0 million from $287.0 million in FY16 after accounting for United Industrial Corporation (UIC) as a subsidiary.
Attributable profit before fair value and other gains came in at $355.9 million for FY17, up 10% from the year before.
Group revenue was 46% higher at $2.10 billion due mainly to the consolidation of the UIC Group and the associated and joint venture companies of UOL Group and UIC Group with effect from September 2017. This added a combined $544.7 million to UOL’s topline.
Scale model of the 663-unit Principal Garden at Prince Charles Crescent
All three core business segments recorded higher contributions, says UOL. Revenue from property development was up 59% to $1.17 billion. Excluding the effects of the UIC consolidation, property development grew 14% or $103 million on higher progressive recognition of sales proceeds mainly from Principal Garden.
Revenue from hotel ownership and operations grew 22% to $526.2 million or 3% excluding the UIC consolidation effects. Pan Pacific Melbourne, which was acquired in July 2017, contributed for the first time. Property investments revenue rose 45% to $327.1 million in FY17.
Post-UIC consolidation, group pre-tax profit before fair value and other gains/losses was 30% higher at $509.9 million. Other gains totalled $524.6 million including a net gain on UIC consolidation of $542.1 million.
UOL's directors have proposed a first and final dividend of 17.5 cents per share, a 17% increase from 15 cents in FY16.
In FY17, group expenses increased 34% to $339.8 million as a result of the UIC consolidation. Marketing and distribution expenses were up 44% to $91.5 million; administrative expenses, 28% more at $99.3 million; finance expenses and other operating expenses, 25% and 36% higher at $37.9 million and $111 million respectively.
The share of profit from associated companies excluding fair value losses decreased 17% to $109 million as UIC, Marina Centre Holdings and Aquamarina Hotel were consolidated into the UOL accounts from Sept 1, 2017.
Share of profit from joint venture companies rose 128% to $9.7 million due mainly to contributions from The Clement Canopy as well as Holborn Island in the first eight months of 2017. The...