By Gavin Gibbon
Financial results released show that revenues were down 22% as company battled Covid-19 economic storm
Dubai-based Emaar Properties has revealed a 35 percent drop in net profits for the first six months of the year to just over AED2 billion ($546 million) compared to the same period last year as the company suffered against the economic toll of the global Covid-19 pandemic.
Financial results revealed on Wednesday reveal revenues were also down by 22 percent on H1 2019 figures at marginally over AED9bn ($2.459bn).
Mohamed Alabbar, founder of Emaar, said: “Our performance in the first half of 2020 has demonstrated our fundamental ability to retain strength and act with agility and speed in the face of the challenges presented by Covid-19. Emaar’s performance is a testament to the products we introduce and the people behind these innovations.
“Each year we set the bar higher, raising the expectations across all our businesses to ensure every Emaar touchpoint is met with the same standard of excellence.”
In terms of Emaar Development, H1 reported revenue stood at AED4.818bn ($1.312bn), with half-yearly net profit of AED1.036bn ($282m), which is down from the figures from the first six months of 2019 - AED6.2bn ($1.7bn) and AED1.4bn ($381.2m) respectively.
As of June this year, Emaar’s delivery track record includes more than 64,700 residential units in Dubai and other international markets, with over 43,500 units delivered in the UAE. Over 29,000 residences are currently being developed in the UAE, alongside 11,000 units across international markets.
The company currently has a total sales backlog of AED41.753bn ($11.368bn) of which AED29.569bn ($8.050bn) is in the UAE, to be recognised as revenue in the coming years.
As revealed earlier this week, Emaar Malls, the retail unit majority-owned by Emaar Properties, reported a net profit of $94m for the first six months of the year – down 69 percent on the same period last year ($308m).
Revenue also slipped 30 percent to $451m for first half of 2020 compared to $606m in the corresponding period last year.
Namshi, the regional e-commerce fashion and lifestyle platform which was taken over by Emaar Malls in 2019, recorded half yearly revenue of $181m, 57 percent higher than the same period last year.
While Emaar’s hospitality and leisure, entertainment and commercial leasing business contributed AED831m ($226m) to the total revenue. Along with Emaar Malls, these businesses posted a revenue of AED2.488bn ($677m), representing 28 percent of Emaar’s total revenue.
Emaar’s international property development recorded half-yearly revenue of AED1.726bn ($470m), similar to the revenues recorded during the same period last year.
“By acting boldly, innovating, revisiting our talent and retaining cash liquidity, I truly believe we have delivered a strong result despite the many challenges we faced,” said Alabbar.
“As the world emerges from Covid-19, I am confident that we will use our strength, talent and business diversity, that we have focused even more intensively on during these challenging times, to face the future stronger than ever.” he added.