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Emaar has now reported rising profits
in nine straight quarters.

Emaar Properties Q2 net profit rises 16pc

DUBAI, August 2, 2015

Dubai's Emaar Properties, builder of the world's tallest tower, reported a 16 per cent 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 Dh1.18 billion ($321.3 million) in the three months to June 30, up from Dh1.02 billion on the prior-year period, Emaar said in a statement.

Sico Bahrain had forecast Emaar's second-quarter profit would be Dh817 million ($222.4 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 Dh3.48 billion, up from Dh3.34 billion a year earlier. Cost of revenue rose 11 per cent to Dh1.63 billion.

The firm's other income swung to a gain of Dh144 million from a small loss a year ago and it also received income tax credits of Dh90 million versus Dh6 million in the second quarter of 2014.

For the first half of this year, Emaar's net profit rose 12 per cent to Dh2.21 billion as revenue increased 13 per cent to Dh6.50 billion.

Emaar generated Dh6.12 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. – Reuters




Tags: Emaar Properties | Net Profit | Dubai developer |

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