Emaar Q2 profit rises 29pc to top $236m
Dubai, August 4, 2014
Dubai's Emaar Properties made a net profit of Dh868 million ($236.3 million) in the second quarter (Q2) of 2014, a 28.6 percent increase compared to Dh675 million achieved in the corresponding period in 2013.
Dubai's largest developer beat analyst forecasts, but revenue from property sales in the emirate dropped.
The earnings of the builder of the world's tallest tower Burj Khalifa beat analyst estimates who predicted an average net profit of Dh839.8 million for the period.
The company sold properties worth Dh3.12 billion in the quarter, down from Dh3.29 billion it made in the same quarter last year, Reuters calculated based on half-year figures.
Emaar’s malls & retail and hospitality & leisure subsidiaries contributed Dh2.647 billion ($721 million) in recurring revenues during the first six months of 2014, 14 per cent higher than the revenue from these high-performing businesses during the same period last year at Dh2.326 billion ($ 633 million). The share of revenue from the two businesses to the total revenue in H1 2014 was 52 per cent.
The malls, retail & hospitality revenues during Q2 2014 was Dh1.301 billion ($ 354 million), 12 per cent higher than Q2 2013 revenues of Dh1.160 billion ($ 316 million).
Revenues from the company’s global operations during H1 2014 were Dh751 million ($204 million), representing 15 per cent of the total revenues. This is 43 per cent higher than the international revenues during H1 2013 at Dh526 million ($143 million). Revenue from international operations during Q2 2014 was Dh463 million ($126 million), 61 per cent higher than Q1 2014 revenue of Dh288 million ($78 million).
Mohamed Alabbar, chairman of Emaar Properties, said the positive growth of the company has been energised by Dubai’s strong credentials as a stable and safe hub for business and leisure.
“In the last six months, Emaar has contributed significantly to building Dubai’s property infrastructure through the launch of several new projects. We will continue to create iconic lifestyle destinations to support the city as it gears up to host the World Expo 2020 through strategic joint venture partnerships,” Alabbar said. – TradeArabia News Service and Reuters