Despite the hike, the figures slightly undershot analysts’ estimates as property development revenue fell as the estimates ranged between AED 880 million and AED960 million with the developer falling short of the median by 7.1%.
Analysts had previously forecast total profit for the Dubai developer this year of AED2.95 billion and revenue of AED10.7 billion.
“This was a good set of results. Emaar showed its traditional strengths – it’s good at retail, good at hospitality, and its core profitability was strong,” said Loic Pelichet, who covers Emaar for NBK Capital.
Emaar’s second quarter gross profit margin of 61.5% was significantly larger than Aldar’s 17.2% margin. Overall second-quarter revenue fell by 10% to AED2.8bn from AED3.1bn in the same period last year. Revenue from property development fell 23% to AED1.5bn. International investors accounted for about 20% of property sales, the company said.