Jabal Omar Development Company says profit rise due to start of off-plan residential sales in Makkah mega project
Jabal Omar Development Company, one of the largest listed companies in the Saudi stock market (Tadawul), has announced a net profit of SR193.78 million for 2018.
The net profit increased by 245 percent due to off-plan residential sales of SR1.2 billion compared to the previous year when there were no residential sales, the comppany said in a statement.
The rise in net profit was also driven by a 28 percent increase in hotel revenue and 60 percent from shopping mall revenue, Jabal Omar Development Company added.
The 2018 financial results also highlighted a decrease in the cost of revenue ratio to 59 percent compared to 98 percent in the previous period mainly due to the sales of residential units, which have a higher profit margin.
In addition, operating cost decreased by 108 percent mainly due to an increase in other income by SR243 million.
Jabal Omar Development Company said it also achieved major milestones in the development stages of its Makkah project, where the completion rate of all seven phases of the project has reached 50 percent.
The company’s flagship project is a multi-use mega development within walking distance of the Grand Mosque, the most sacred place of worship for Muslims.
It added that the first phase is completed and fully operational while the remaining completion rate of the phases are 72 percent of the second phase, 68 percent of the third phase and 72 percent of the fourth phase.
Jabal Omar Development Company said it will be opening the latest brand of Jabal Omar hotels prior to the holy month of Ramadan this year.