Emaar EC widens FY19 net losses to SAR 509 mln

Emaar The Economic City (Emaar EC) widened net losses after Zakat and tax to SAR 509 million for the fiscal year 2019, from SAR 138 million a year earlier.

The company was hit by higher finance costs, a decline in other income amid lower sales of investment properties, and higher depreciation as well as general and administrative expenses.

Emaar EC recorded an increase in impariment loss on outstanding trade receivables.

The launch of certain new operating assets in hospitality and leisure sectors to boost organic growth of King Abdullah Economic City, also weighed on the real estate developer. Emaar EC incurred initial operating losses on these assets in the first period of operations.

In Q4 2019, the real estate developer turned to a net loss after Zakat and tax of SAR 205.75 million against a net profit of SAR 55.56 million in year-earlier period.