Dubai’s Emaar Properties Q2 net profit rises 16 pct

Cars pass by the city skyline with the Burj Khalifa, world tallest tower in background, Tuesday, July 28, 2015, in Dubai, United Arab Emirates. (AP)

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 1.18 billion dirhams ($321.3 million) in the three months to June 30, up from $278 million on the prior-year period, Emaar said in a statement.

SICO Bahrain had forecast Emaar's second-quarter profit would be $222 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 $947 million, up from $909 million a year earlier. Cost of revenue rose 11 percent to $444 million.

The firm's other income swung to a gain of $39 million from a small loss a year ago and it also received income
tax credits of $25 million versus $2 million in the second quarter of 2014.

For the first half of this year, Emaar's net profit rose 12 percent to $602 million as revenue increased 13 percent to $2 billion.

Emaar generated $2 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.

Last Update: Wednesday, 20 May 2020 KSA 09:48 - GMT 06:48