Emaar Properties has reported a 55 per cent increase in net profit for the first quarter, despite posting revenues that came in below analysts' estimates.
The Dubai-based developer reported a net profit of Dh863 million compared with Dh556m for the first quarter of 2013.
Profits for the quarter were 17 per cent higher than an average of analyst estimates surveyed by Bloomberg, even though revenue came in lower than expected.
Emaar reported revenues of Dh2.25 billion for the first quarter, 7 per cent higher than the same period last year, but 18 per cent lower than the previous quarter. Analysts had predicted revenues of about Dh2.62bn.
The developer’s shopping malls and retail business – which include The Dubai Mall – contributed revenues of Dh863m for the quarter, a year on year increase of 15 per cent.
Nearly 21 million people visited The Dubai Mall during the quarter, the company said.
Emaar’s hospitality and leisure business recorded revenues of Dh483m for the quarter, a year on year increase of 16 per cent.
“The increase in tourist arrivals to Dubai and the positive market sentiment have catalysed the growth of our shopping malls and hospitality business, too, which contribute significantly to our recurring revenues,” said Emaar’s chairman, Mohamed Alabbar.
“This year, led by our strategy to monetise key performing assets, expand to high-growth international markets and develop prime real estate assets in Dubai, we will continue to focus on delivering long-term value for our shareholders and in providing exceptional service standards to our customers.”
jeverington@thenational.ae
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