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Sun 2 Aug 2015 03:52 PM

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Dubai's Emaar Properties Q2 net profit rises 16%

The developer made a net profit of $321.3 million in the three months to June 30

Dubai's Emaar Properties Q2 net profit rises 16%
(AFP/Getty Images)

Dubai's Emaar Properties, builder of the world's tallest tower, reported a 16 percent rise in second-quarter net profit on Sunday as other income increased and it received more money in income tax credits.

The developer, in which Dubai's government owns a minority stake, made a net profit of AED1.18 billion ($321.3 million) in the three months to June 30, up from AED1.02 billion on the prior-year period, Emaar said in a statement.

SICO Bahrain had forecast Emaar's second-quarter profit would be AED817 million.

The developer has now reported rising profits in nine straight quarters and achieved its latest increase despite relatively sluggish revenue growth and with analysts noting a marked slowdown in Dubai's recently resurgent property sector.

Emaar's second-quarter revenue was AED3.48 billion, up from AED3.34 billion a year earlier. Cost of revenue rose 11 percent to AED1.63 billion.

The firm's other income swung to a gain of AED144 million from a small loss a year ago and it also received income tax credits of AED90 million versus AED6 million in the second quarter of 2014.

For the first half of this year, Emaar's net profit rose 12 percent to AED2.21 billion as revenue increased 13 percent to AED6.50 billion.

Emaar generated AED6.12 billion in Dubai property sales in the first half of 2015.

It did not provide a comparative figure for the same period of last year, but consultants have noted a substantial slowdown in the emirate's property sector.

Home sales shrank by about two-thirds in the first half of 2015, and prices also slipped, with further declines expected over the rest of the year, property consultants JLL said in a report last week.

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