Cost cuts drive Deyaar's Q3 profit surge
Dubai, October 24, 2012
Property firm Deyaar on Wednesday posted a surge in third-quarter net profit as it halved costs to make up for a drop in revenue.
The emirate's second largest developer by market value made a third-quarter net profit of 5.1 million dirhams ($1.4 million), compared with 0.7 million dirhams made during the same period in 2011, it said in a statement on the Dubai bourse.
However, revenue for the quarter fell to 137.4 million dirhams from 184.4 million dirhams in the prior-year period. The company halved its direct costs in the quarter to 92.1 million dirhams from 180.6 million dirhams a year earlier.
Deyaar was one among several property firms in Dubai that plunged into financial troubles after the emirate's property market collapse in 2008. While Dubai's real estate sector is improving, a complete recovery is distant.
The developer said it continues to be impacted by the repercussions of the global financial crisis. The firm will focus on the completion of existing projects and generating income from its facilities management and leasing businesses, it added.
Saeed Al Qatami, Deyaar's chief executive, said earlier this month that the firm will focus on selling more than 400 unsold units from its old projects.
Deyaar's results follow that of Emaar Properties, Dubai's biggest real estate developer, which reported a 4.7 percent drop in third-quarter profit on Tuesday. - Reuters