DUBAI, 18 October 2007 — Emaar Properties registered revenue and net profits of AED12.537 billion ($3.413 billion) and AED4.839 billion ($1.317 billion), respectively for the first nine months of the year, the company said in a statement yesterday.
This is 48 percent more than the revenue of AED8.458 billion ($ 2.303 billion) and 4 percent higher than the net profit of AED4.658 billion ($ 1.268 billion) for the same period in 2006.
For the third quarter of 2007, revenue and net profits posted AED4.459 billion ($1.214 billion) and AED1.560 billion ($0.425 billion), respectively.
The third quarter revenues are 7 percent higher than the second quarter 2007 revenue of AED4.174 billion ($1.136 billion) and 32 percent more than the third quarter 2006 revenue of AED3.379 billion ($ 0.920 billion). Net profits have been maintained at second quarter 2007 and third quarter 2006 levels.
Although, the profitability of the Dubai operations has increased significantly in the first nine months of 2007 as compared to the similar period in 2006, it is marginally offset by the increased expenditure relating to sales launches in Egypt, Syria, Saudi Arabia, Turkey, Jordan and Morocco and ramping up of the organization structure of the various business segments (malls, hospitality & leisure, education and healthcare), where significant assets are scheduled for completion in 2008.
The profitability related to these expenses accrues in future period.
Earnings per share (EPS) for the first nine months of the year is AED0.79 as compared to the actual EPS of AED0.76 for the same period in 2006.
“The stable performance of Emaar during the third quarter of the year — a period marked by severe fiscal corrections globally — is testimony to the stable fundamentals that drive the company’s growth,” said Mohamed Ali Alabbar, chairman, Emaar Properties.
“Our strategy of global expansion and business diversification has also gained momentum, taking us closer to realizing our Vision 2010 of becoming one of the most valuable companies in the world,” he said.
“A highlight of Emaar’s growth is the strong and sustained domestic sales, a reiteration of the investment-friendly environment of Dubai. The setting up of the Real Estate Regulatory Authority (RERA) and the Escrow Account Law has further stabilized the property sector and made operations more transparent — thus enhancing customer trust,” he added.