Emaar net profit increases 41% in H1 2014 to Dhs1.731bn
Building on the positive growth of Dubai’s economy, Emaar Properties PJSC recorded a net profit of Dhs1.731bn ($471m) during the first half (H1 – January to June) of 2014. This is 41% higher than H1 2013 net profit of Dhs1.231bn ($335m).
Led by the strong performance of the Malls and Hospitality business segments, Emaar’s revenue for the first six months of 2014 is Dhs5.063bn ($1.378bn), similar to H1 2013 revenue of Dhs5.219bn ($1.421bn).
The net profit for the second quarter (Q2 – April to June) 2014 is Dhs868m ($236m), 29% higher than Q2 2013 net profit of Dhs675m ($184m). Revenue for Q2 2014 is Dhs2.807bn ($764m), 24% higher than Q1 2014 revenue of Dhs2.256bn ($614m).
Emaar’s malls & retail and hospitality & leisure subsidiaries contributed Dhs2.647bn ($721m) in recurring revenues during the first six months of 2014, 14% higher than the revenue from these high-performing businesses during the same period last year at Dhs2.326bn ($633m). The share of revenue from the two businesses to the total revenue in H1 2014 is 52%. The malls, retail & hospitality revenues during Q2 2014 was Dhs1.301bn ($354m), 12% higher than Q2 2013 revenues of Dhs1.160bn ($316m).
Revenues from the company’s global operations during H1 2014 were Dhs751m ($204m), representing 15% of the total revenue. This is 43% higher than the international revenues during H1 2013 at Dhs526m ($143m). Revenue from international operations during Q2 2014 was Dhs463m ($126m), 61% higher than Q1 2014 revenue of Dhs288m ($78m).
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, UAE Vice President and Prime Minister 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 Dhs9.032bn ($2.459bn), 43% higher than H1 2013 sales of Dhs6.328bn ($1.723bn). International investors accounted for approx. 20% of the total sales during the first six months of the year, valued at approx. Dhs1.8bn ($490m).
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 Malls Revenue
Emaar Malls Group, the developer of the iconic Dubai Mall, recorded impressive revenues of Dhs1.250bn ($340m) during the first six months of 2014. This is 13% higher than the H1 2013 revenue of Dhs1.106bn ($301m). The Q2 2014 malls revenue is Dhs650m ($177m), 11% higher than Q2 2013 revenue of Dhs584m ($159m).
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 & leisure business recorded revenues of Dhs893m ($243m) during H1 2014, 16% higher than the revenues during H1 2013 at Dhs771m ($210m).
Hospitality & leisure revenues during Q2 2014 were Dhs410m ($112m) 16% higher than Q2 2013 revenue of Dhs354m ($96m). The flagship Address Hotels + Resorts reported average occupancy of 89% 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 (Fête des Lumières 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 a colossal 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.