Emaar The Economic City (Emaar EC) widened net loss after Zakat and tax by more than two-fold to SAR 674 million for the first nine months of 2020, from SAR 312 million a year earlier, on lower revenue and gross profit amid a slowdown in the real estate sector.
The real estate developer’s results were bolstered in the period ending September 2019 by gains on sale of investment properties, while such investment property disposal was immaterial during the current period.
| Item | 9m 2019 | 9m 2020 | Change |
|---|---|---|---|
| Revenues | 728.31 | 481.17 | (33.9 %) |
| Gross Income | 249.91 | (11.81) | (104.7 %) |
| Operating Income | (215.51) | (489.24) | (127.0 %) |
| Net Income | (311.78) | (673.77) | (116.1 %) |
| Average Shares | 850.00 | 850.00 | - |
| EPS (Riyals) | (0.37) | (0.79) | (116.1 %) |
In Q3 2020, net losses narrowed by 12.2% to SAR 187 million, thanks to improved performance of operating assets, mainly the hospitality and leisure assets.
The third-quarter figures were also driven by a decline in financial charges amid lower average SAIBOR rate, and improved profit from Port Development Co. (PDC), which increased the group’s equity accounted investees.
When compared to previous quarter, Emaar EC trimmed net losses by 8.8% from SAR 205 million, backed by a decline in finance charges, as well as selling and marketing expenses and improved profit from PDC.
| Item | Q3 2019 | Q3 2020 | Change |
|---|---|---|---|
| Revenues | 160.36 | 132.68 | (17.3 %) |
| Gross Income | 6.45 | 10.52 | 63.1 % |
| Operating Income | (136.95) | (144.18) | (5.3 %) |
| Net Income | (212.81) | (187.34) | 12.0 % |
| Average Shares | 850.00 | 850.00 | - |
| EPS (Riyals) | (0.25) | (0.22) | 12.0 % |
| Item | Q2 2020 | Q3 2020 | Change |
|---|---|---|---|
| Revenues | 143.10 | 132.68 | (7.3 %) |
| Gross Income | 17.00 | 10.52 | (38.1 %) |
| Operating Income | (143.21) | (144.18) | (0.7 %) |
| Net Income | (204.93) | (187.34) | 8.6 % |
| Average Shares | 850.00 | 850.00 | - |
| EPS (Riyals) | (0.24) | (0.22) | 8.6 % |
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