Emaar EC widens losses to SAR 171 mln in Q1 2023

Emaar the Economic City Co. (Emaar EC) reported a net loss of SAR 171 million for Q1 2023, deeper than a loss of SAR 166 million a year earlier.

The company reported an increase in gross operating loss by SAR 3.3 million from gross loss of SAR 32.2 million in Q1 2022 to SAR 35.5 million in Q1 2023 mainly due to reduction in school revenue by SAR 5.2 million due to transfer of school operation to third party operator.

Emaar EC also saw higher general and administrative expenses, impairment loss and financial charges as well as lower share of results from equity accounted investees and other income. 

Zakat charges increased by SAR 3.7 million mainly due to anticipated changes in Zakat base for 2023.

Meanwhile, marketing cost declined by SAR 15 million mainly due to reduction in additional discounts given to various customers during last quarter.

Sequentially, the company narrowed losses in Q1 2023 from SAR 530.65 million in Q4 2022.

Total shareholders’ equity, excluding minority interest, fell to SAR 6.48 billion as of March 31, 2023, from SAR 7.61 billion a year earlier.

Accumulated losses reached SAR 4.86 million as of March 31, 2023, representing 42.91% of Emaar EC’s capital amounting to SAR 11.33 million. 

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