DUBAI 15 August 2017: Emaar Properties recorded a 15 per cent growth in net profit to reach Dh2.837 billion (US$772 million) during the first six months of 2017 (H1), compared to Dh2.475 billion ($674 million) during the same period last year.
The H1 2017 revenue reached Dh7.866 billion ($2.142 billion) an increase of 8 percent over H1 2016 revenue of Dh7.257 billion ($1.976 billion), said Wam.
Recurring revenue from Emaar’s shopping malls and retail, hospitality and leisure, commercial leasing and entertainment businesses in H1 2017 is Dh3.016 billion ($821 million), which represents 38 per cent of the total revenue.
Emaar’s revenue from its international development recorded a growth of 64 percent in H1 2017 to Dh1.697 billion ($462 million), compared to the H1 2016 international revenue of Dh1.032 billion ($281 million). This was underpinned by significant progress in projects achieved in key markets including Egypt, Turkey, India and Saudi Arabia, among others. Emaar’s international development now contributes 22 percent to the total Group revenue.
In the second quarter (April to June) of 2017 (Q2), Emaar recorded a net profit of Dh1.453 billion ($396 million) an increase of 14 per cent over Q2 2016 net profit of Dh1.270 billion ($346 million).
Mohamed Alabbar, Chairman of Emaar Properties, said the positive performance builds on Emaar’s ongoing focus on project delivery and customer-centric service.
Commenting on the results, he added, “Organisation-wide, we are making a transformational change to strengthen project management and service excellence led by digital technology.”
Emaar’s commitment to value creation for shareholders was highlighted by the company distributing a cash dividend of 15 percent of the share capital, equivalent to Dh1.074 billion ($292 million).
During the first six months of 2017, Emaar recorded property sales in Dubai of Dh10.814 billion ($2.944 billion) 22 percent higher than Dh8.9 billion ($2.42 billion) during the same period in 2016 underlining the significant customer interest in Emaar’s projects.
As part of its digital transformation initiatives, Emaar Malls acquired a 51 per cent stake in Namshi, the leading online fashion retailer in the Middle East. This complements its focus on multi-channel retailing and creating long-term value for its stakeholders. At its second Annual General Meeting in April, Emaar Malls distributed 10 per cent of the share capital, equivalent to Dh1.301 billion ($354 million) as cash dividend to the shareholders.
By Rajive Singh