Emaar Properties posts 15% growth in net profit in H1 2017

RetailME Bureau

Emaar Properties PJSC recorded a 15% growth in net profit to AED2.837 billion ($772 million) during the first six months (January-to-June) of 2017 (H1 2017), compared to AED2.475 billion ($674 million) during the same period last year.

H1 2017 revenue is AED7.866 billion ($2.142 billion), an increase of 8% over H1 2016 revenue of AED7.257 billion ($1.976 billion).

Recurring revenue from Emaar’s shopping malls & retail, hospitality & leisure, commercial leasing and entertainment businesses in H1 2017 is AED3.016 billion ($821 million), which represents 38% of the total revenue.

Emaar’s revenue from its international development recorded a growth of 64% in H1 2017 to AED1.697 billion ($462 million), compared to the H1 2016 international revenue of AED1.032 billion ($281 million). This was underpinned by significant progress in projects achieved in key markets including Egypt, Turkey, India and Saudi Arabia, among others. Emaar’s international development now contribute 22% to the total Group revenue.

In the second quarter (April-to-June) of 2017 (Q2 2017), Emaar recorded a net profit of AED1.453 billion ($396 million), an increase of 14% over Q2 2016 net profit of AED1.270 billion ($346 million).

“Organisation-wide, we are marking a transformational change to strengthen project management and service excellence led by digital technology. At every stage of development, we place emphasis on being more efficient and responsive to the aspirations of our customers, and to create long-term value for our stakeholders,” says Mohamed Alabbar, chairman, Emaar Properties

“This complements the transition of the nation into a smart economy led by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE vice president and prime minister and ruler of Dubai. As a year-round tourism and retail destination, and with a focus on infrastructure development, the UAE has evolved as a global business and leisure hub, and through our projects, we are contributing to the nation in driving sustained economic growth,” he adds.

Steady growth in recurring revenue

Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, reported H1 2017 net profit of AED1.021 billion ($278 million), 3% higher than H1 2016 net profit of AED987 million ($269 million). Emaar Malls revenue in H1 2017 is AED1.624 billion ($442 million), similar to H1 2016 revenue of AED1.618 billion ($441 million).

The shopping mall assets of Emaar Malls welcomed over 65 million visitors in the first half of 2017, an increase of 7% over H1 2016.

As part of the digital transformation initiatives, Emaar Malls acquired a 51% stake in online fashion retailer Namshi. This complements its focus on multi-channel retailing and creating long-term value for its stakeholders.

Further afield, in Q2 2017, Emaar Turkey opened Emaar Square Mall, a world-class retail and leisure destination located in the heart of Emaar Square in Istanbul, an elegant master-planned development, showcasing some of the world’s leading retail, entertainment and gastronomy brands to assure visitors a memorable experience.