Emaar's Q1 revenue and profit soars

by Reuters Sunday, 15 April 2007

Dubai-based Emaar Properties, the largest Arab real-estate developer by market value, said first-quarter profit rose 13% to 1.72 billion dirhams ($468.8 million), missing analyst forecasts.

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Revenue soared 74% to 3.9 billion dirhams, the company said in a statement.
Emaar made 1.52 billion dirhams in the first quarter last year.

The earnings missed even the lowest of four analysts polled by Reuters last month, which averaged 1.88 billion dirhams. The lowest was 1.8 billion dirhams by Deutsche Bank.

"I am surprised that the profit was below forecast. But at the same time with a business model like Emaar's it does have its ups and downs in terms of quarterly numbers," said Bryan D'Aguiar, head of research at SICO investment bank. SICO had forecast earnings of 1.999 billion dirhams.

Dubai's government took a majority stake in Emaar in March by exchanging land for $7.6 billion worth of stock.

The deal could increase Emaar's land holdings in Dubai by 55%, giving the developer more room to expand at home until foreign projects start generating profit, analysts have said.

Shares of Emaar fell 1.75% on Sunday. The stock was down 6.56% this year at Thursday's close.



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