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- Emaar Malls reports 3% growth in net profits to $308 million in half-year 2019
Emaar Malls reports 3% growth in net profits to $308 million in half-year 2019
Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, recorded a 3 percent increase in net during the first six months (January to June) of 2019 to Dh1.13 billion (US$308 million), compared to the net profit of Dh1.1 billion (US$300 million) during the same period in 2018.
Its half-year revenue grew 6 percent to Dh2.23 billion (US$606 million), compared to Dh 2.1 billion (US$573 million) recorded in the first half of 2018.
Revenue for Q2 2019 recorded an increase of 8 percent to Dh1.15 billion (US$314 million), compared to the Q2 2018 revenue of Dh1.07 billion (US$290 million), and 7 percent over the Q1 2019 revenue of Dh1.08 billion (US$293 million).
Creating sustained value for its shareholders, Emaar Malls distributed a cash dividend of Dh1.30 billion (US$354 million), equivalent to 10 percent of share capital, for the fourth consecutive year, during the second quarter of the year.
The assets of Emaar Malls – The Dubai Mall, Dubai Marina Mall, Gold and Diamond Park, Souq Al Bahar and the Community Retail Centres – together recorded an impressive visitor footfall of 68 million during the first six months of this year. This is 2 percent more than the visitor arrivals during H1 2018, when the assets together welcomed 67 million visitors. The Dubai Mall, the world’s most visited retail and lifestyle destination, welcomed 41 million visitors in H1 2019, 2 percent higher than the same period last year. Occupancy levels across all assets stood at a robust 92 percent during the first half of 2019.
Another highlight of the year was Emaar Malls marking the full acquisition of Namshi, the leading regional fashion e-commerce retailer in an all-cash transaction of Dh496.9 million (US$135 million). Namshi reported sales of Dh422 million (US$115 million) during H1 2019, 10 percent higher than the online sales of Dh384 million (US$105 million) reported in H1 2018.
Mohamed Alabbar, Chairman of Emaar Properties and Board Member of Emaar Malls, said: “Emaar Malls has consistently focused on delivering enhanced customer experiences, which drive our sustained growth – both through our malls and Namshi, our fully owned online business. Our strategy is to deliver exceptional omnichannel retail choices for our visitors. The positive performance reflects the customer-oriented asset mix that makes our malls preferred lifestyle destinations for all, as well as the growth in tourist arrivals to Dubai, today, a global tourism and business hub.”
Emaar Malls is further strengthening its retail infrastructure with new extensions of The Dubai Mall – Zabeel and Fountain Views – scheduled to open this year. These extensions link the mall to the Financial Centre Road and to the Sheikh Mohammed bin Rashid Al Boulevard, respectively, and will add 4,500 parking spaces, enhancing the connectivity and convenience of visitors.
Dubai Hills Mall, the brand-new asset under Emaar Malls, will open in 2020 in Dubai Hills Estate, which will offer a gross leasable area (GLA) of about 2 million square feet and feature about 550 retail and entertainment destinations. Dubai Hills Mall will have four major family entertainment and leisure centres as well as a cineplex, hypermarket, seven anchor retail experience stores, and over 7,000 dedicated parking spaces.
Emaar Malls is also redeveloping Meadows Village to increase its GLA by approximately 95,000 square feet and is scheduled for completion in 2020, further enhancing its Community Retail Centres.