Emaar net profit for H1 2014 jumps 41%

Building on the positive growth of Dubai’s economy, Emaar Properties PJSC recorded a net profit of Dh1.731 billion ($471 million) during the first half (January to June) of 2014. This is 41 per cent higher than H1 2013 net profit of Dh1.231 billion ($335 million).

Led by the strong performance of the malls and hospitality business segments, Emaar’s revenue for the first six months of 2014 is Dh5.063 billion ($1.378 billion), similar to H1 2013 revenue of Dh5.219 billion ($1.421 billion).

The net profit for the second quarter (Q2 April to June) 2014 is Dh868 million ($236 million), 29 per cent higher than Q2 2013 net profit of Dh675 million ($184 million).

Revenue for Q2 2014 is Dh2.807 billion ($764 million), 24 per cent higher than Q1 2014 revenue of Dh2.256 billion ($614 million).

Emaar’s malls and retail and hospitality and 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 is 52 per cent.

The malls, retail and 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 revenue. 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. "His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has set a strong roadmap of growth for the city’s economy, which has boosted investor confidence. The city is today a magnet for talent and capital, and we are complementing this growth through our world-class property, retail and hospitality assets."

He added: "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."

Premier projects in Dubai

During the first six months of the year, Emaar further strengthened its property portfolio in Dubai with the launch of more than 10 prestigious projects to strong investor response, including international investors. The total value of sales of Emaar’s projects in Dubai during H1 2014 was Dh9.032 billion ($2.459 billion), 43 per cent higher than H1 2013 sales of Dh6.328 billion ($1.723 billion).  International investors accounted for about 20 per cent of the total sales during the first six months of the year, valued at about Dh1.8 billion ($490 million).

Internationally, Emaar Middle East, the company’s subsidiary focused on projects in Saudi Arabia, launched Emaar Square. Billed as the most prestigious commercial real estate development in Jeddah, the project is part of Jeddah Gate, Emaar Middle East’s master-planned community.

Robust growth in mall revenue

Emaar Malls Group, the developer of the iconic Dubai Mall, recorded impressive revenues of Dh1.250 billion ($340 million) during the first six months of 2014. This is 13 per cent higher than the H1 2013 revenue of Dh1.106 billion ($301 million). The Q2 2014 malls revenue is Dh650 million ($177 million), 11 per cent higher than Q2 2013 revenue of Dh584 million ($159 million).

The mall recorded strong growth in high-spending visitor arrivals from the GCC countries, China, South Asia, Europe, Russia and CIS countries.

Full spectrum of hospitality

Emaar’s hospitality and leisure business recorded revenues of Dh893 million ($243 million) during H1 2014, 16 per cent higher than the revenues during H1 2013 at Dh771 million ($210 million).

Hospitality and leisure revenues during Q2 2014 were Dh410 million ($112 million) 16 per cent higher than Q2 2013 revenue of Dh354 million ($96 million). The flagship Address Hotels + Resorts reported average occupancy of 89 per cent during the first six months of this year.

New leisure attractions

Focused on supporting Dubai’s growth by strengthening the tourism, leisure and retail sectors, Emaar organised the first of its kind ‘Dubai Festival of Lights,’ held in collaboration with the City of Lyon's Festival of Lights (Fete des Lumieres de Lyon), in Downtown Dubai. The event attracted thousands of visitors daily to ‘The Centre of Now.’

Further adding to the destination appeal of The Dubai Mall and Downtown Dubai, Emaar has showcased an exhibit of the Late Jurassic Period dinosaur, now named DubaiDino, and a rare phenomenon of nature, a 5-metre long crocodile, King Croc, and his companion at Dubai Aquarium & Underwater Zoo. 



 

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