Dubai developer Emaar Properties has recorded a significant rise in profits.
The company reported a 14 percent rise in Q2 net profit to reach Dhs1.45bn, compared to Dhs1.27bn in the second quarter of 2016.
It also revealed that net profit during the first half of the year rose by 15 percent to Dhs2.8bn, compared to Dhs2.47bn during the same period last year.
Meanwhile, revenues during the second quarter reached Dhs3.79bn, up two percent year-on-year. In H1, total revenues increased by eight percent year-on-year to reach Dhs7.86bn.
Emaar said it is distributing a cash dividend of 15 percent of the share capital, equivalent to Dhs1.074bn.
The developer attributed the rise in net profit and revenues to robust growth in its international developments.
Emaar’s revenue from international development grew 64 percent in H1 2017 to Dhs1.69bn, boosted by projects in markets such as Egypt, Turkey, India, and Saudi Arabia.
International development now contributes 22 percent to the total group revenue.maar also recorded a 22 percent rise in property sales in Dubai during the first half of the year to reach Dhs10.81bn.
Emaar also recorded a 22 percent rise in property sales in Dubai during the first half of the year to reach Dhs10.81bn.
Strong sales were recorded for the residential launches in Emaar’s flagship projects including Dubai Creek Harbour, Downtown Dubai, Dubai Hills Estate, and Emaar South.
The company also saw growth in recurring revenues from its shopping malls and retail, hospitality and leisure, commercial leasing, and entertainment businesses – which reached Dhs3.01bn in H1, representing 38 percent of the total revenue.
The company’s shopping malls saw over 65 million visitors in the first half of 2017—an increase of seven per cent over H1 2016.
Meanwhil, the hospitality and leisure, commercial leasing, and entertainment businesses of Emaar recorded H1 2017 revenues of Dhs1.39bn—up seven percent year-on-year.
Emaar opened three hospitality projects between January to June, including Address Boulevard in Downtown Dubai, Rove Healthcare City, and Rove Trade Centre.
Mohamed Alabbar, chairman of Emaar Properties, said: “Organisation-wide, we are marking a transformational change to strengthen project management and service excellence led by digital technology.
“At every stage of development, we place emphasis on being more efficient and responsive to the aspirations of our customers, and to create long-term value for our stakeholders.”
Written by: Aarti Nagraj
Source: Gulf Business