Egypt's Talaat Moustafa Q2 profit dips 29%

ESCLATING COSTS: Egyptian property developer, Talaat Moustafa, sees Q2 net profit slump 29% as building costs escalate. (Getty Images)

Egyptian property developer Talaat Moustafa (TMG) said on Tuesday its second-quarter net profit fell 29 percent to 321 million Egyptian pounds ($58 million) as building costs escalated.

The firm, Egypt's largest real estate developer by market value, said revenue was 1.638 billion pounds, down from 1.675 billion pounds in the same period last year.

The builder said the reduction in profit was due to higher costs for building materials in 2007 and 2008 on units in Madinaty that were sold at the project's inauguration in 2006 but which were realised in 2009.

The firm's real estate and construction costs jumped 17.5 percent to 2.2 billion pounds in the first half of 2009, versus 1.8 billion pounds in the first half of 2008. The firm said second-quarter costs were 1.2 billion but did not provide a comparative figure.

As of end-June the firm had assets worth 53.2 billion pounds, including 1.8 billion pounds in cash or cash equivalents, and debt of 2 billion pounds. (Reuters)

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM