Emaar Properties reported a 14 per cent rise in fourth quarter profit despite a decline in real estate sales.
Emaar's net profit came in at Dh861 million for the final three months of last year, up from Dh756m a year earlier.
The rise in earnings came after relatively flat sales, with fourth quarter revenue growing just 3 per cent during the year to Dh2.8 billion.
In a preliminary results statement filed after markets closed yesterday, the company said full year profit gained 28 per cent to to Dh3.29bn compared to a year earlier, even as revenue fell 4 per cent to Dh9.89bn.
Emaar's shopping malls, retail and hospitality businesses contributed more than 54 per cent of the total revenue, bringing in Dh5.36bn, a 12 per cent increase on last year.
However, the developer hived off its retail business as Emaar Malls Group on the Dubai Financial Market in October.
Revenue for the property sales business fell 18 per cent year-on-year, dropping to Dh4.52bn last year compared with Dh5.52bn the previous year.
The company’s international operations generated Dh1.89bn, making up 19 per cent of total revenue and marking a growth of 63 per cent compared to 2013.
Emaar shares rose 4.55 per cent in trading yesterday to close at Dh7.58 each.
“By and large this is a good set of results, and based on the company’s development pipeline we can be reasonably positive about Emaar – more than for other developers who have not sold as much stock over the past three years,” said Sanyalaksna Manibhandu, the research manager at NBAD Securities.
“Yes, there are risks for 2015 such as the fall in the oil price, the increased price of the dirham compared with the euro and the decline in the Russian market, but it seems that Emaar has diversified its business and thought about the risks more than other developers out there.”
lbarnard@thenational.ae
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