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Dubai: Emaar Properties is feeling the impact of recession in foreign markets, but reported about seven per cent rise in its quarterly profit.
The Dubai-based real estate developer, with operations in three dozen countries, said its net profit for the April-June period this year was Dh1.66 billion compared with Dh1.55 billion in the corresponding period last year. The quarterly profit figure was below an analyst consensus.
Sales revenue for the second-quarter grew seven per cent to Dh4.24 billion against the first-quarter 2008 revenue of Dh3.96 billion. Its revenue for the first six months of the year was at same level as the Dh8.2 billion revenue in the first half of 2007.
Challenge
"Globally, the first-half of 2008 was marked by recessionary trends and mounting inflation. For a property developer of Emaar's geographic outreach, this period also meant greater exposure to the market challenges of rising prices and reduced consumer spending," Emaar Properties chairman Mohammad Al Abbar said in a statement.
He said Emaar will focus its growth efforts in the emerging markets of the region and Asia.
Emaar recorded first-half net profit of Dh3.31 billion compared with the half-year 2007 net profit of Dh3.27 billion. It said UAE property sales were the main contributor to revenues. "Emaar's UAE projects continued to contribute strongly to first-half 2008 revenues with the company's launch of new residential and commercial space in Downtown Burj Dubai," the company said.
Earnings per share for the first six months of the year is 54 fils with the annualised EPS for 2008 being Dh1.08.
A Dubai-based analyst attributed a drop in gross profit margin in the second quarter to the increase in the cost of sales in the UAE and the recessionary trends hitting the US property market, where the company owns John Laing Homes
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