Dubai: Emaar Properties reported on Sunday a 4 per cent decline in its net profit for the first half of 2019 as revenues slid and general expenses rose.
The developer of the world’s tallest tower, the Burj Khalifa, said its profits fell to Dh3.1 billion from Dh3.2 billion in the same half of 2018. The profits for 2018 were restated from those disclosed last year.
The drop in profits came as revenues also fell by 4 per cent year-on-year to Dh11.6 billion.
In a statement to the Dubai bourse, Emaar did not elaborate on why its revenues declined but said that it has a total sales backlog of Dh49.19 billion, including international operations. This will be recognised as revenues in the next three to four years, it said.
The company said its sales reached Dh9.3 billion in the first six months of 2019. This is 52 per cent higher than the sales in the same period last year of Dh6.2 billion. Emaar’s share prices have been on the rise over the past month as investors anticipated strong sales to drive profits. On Sunday, the developer’s share prices fell by 4.04 per cent to close at Dh5.23.
The company has a land bank of 1.6 billion square feet in various markets, and saw international operations account for 15 per cent of revenues in the first half of the year.
“Our successful expansion to malls and hospitality, which complements the tourism sector of Dubai, too generates significant revenue,” said Mohamed Alabbar, chairman of Emaar Properties.
“As a catalyst of the economy, and with our commitment to creating value, we will continue to strengthen our three core businesses, especially by leveraging the power of digital connectivity and engagement.”