More and more earnings

EMAAR-

Real estate developer Emaar Properties’ net income rose 12.2% y-o-y to AED 11.1 bn in 9M 2024, according to its earnings release (pdf). Meanwhile, revenues rose 30% y-o-y to AED 23.8 bn during the nine-month period, fueled by strong demand in the real estate market, steady project rollouts, and solid investor confidence amid the ongoing rise in tourism and retail sales in Dubai.

The developer saw its sales increase 60% y-o-y, reaching AED 50 bn during the first nine months of 2024. The sales bolstered Emaar’s revenue backlog from property sales to over AED 100 bn, up 45% y-o-y — set to be recognized as revenue over the next 4-5 years.

REMEMBER- In real estate, sales ≠ revenues. Off-plan sales dominate, with companies booking sales when contracts are signed but recognizing revenue only when units are delivered or reach a certain completion percentage. As a result, revenues typically come from past sales, while current sales are recognized in future periods.

How Emaar’s subsidiaries performed: Emaar Development reported AED 12.5 bn in revenues, up 69% y-o-y, with AED 48 bn in property sales (up 66% y-o-y). Its sales backlog rose to AED 83.7 bn, according to a separate earnings release (pdf). Emaar Malls generated AED 4.2 bn in revenues, while the hospitality, leisure, and entertainment divisions increased revenues by 7% y-o-y, contributing AED 2.6 bn.

DEWA-

Dubai Electricity and Water Authority saw its net income decline 14% y-o-y to AED 2.9 bn in 3Q 2024, according to the company’s consolidated financial statements (pdf). The company’s revenues climbed 4.8% y-o-y to AED 9.9 bn.

On a 9M basis: Dewa reported a 10.7% decline y-o-y in net income to AED 5.5 bn. The authority booked a 6.2% y-o-y increase in its revenues to AED 23.5 bn on the back of an increase in demand for electricity, water and cooling services, according to a separate earnings release (pdf).

AIR ARABIA-

Budget carrier Air Arabia saw its bottom line increase 8% y-o-y to AED 564 mn in 3Q 2024 on the back of expanded operating capacity and an increase in routes, according to an earnings release (pdf). The airline’s topline rose 10% y-o-y during the period to AED 1.8 bn.

On a nine-month basis, Air Arabia’s net income fell 5% y-o-y to AED 1.3 bn in 9M 2024. The company’s revenues rose 12% y-o-y to AED 5 bn, driven by strong passenger demand, with over 14 mn passengers traveling with Air Arabia during the period, marking a 13% y-o-y increase.

LULU RETAIL-

LuLu Retail’s posts financial results ahead of ADX listing: Lulu Group’s retail arm Lulu Retail’s net income in 2Q 2024 doubled y-o-y to USD 56.2 mn, while revenues increased by 3.6% y-o-y to USD 1.9 bn, according to the company’s financials. On a 1H basis, the firm’s bottom line rose by 133% y-o-y to USD 149.3 mn, and the revenue increased by 5.6% y-o-y to USD 3.9 bn.

REMEMBER- The company raised AED 6.3 bn from its IPO last week with an order book that was 25x oversubscribed, excluding cornerstone investors.

PRESIGHT-

Data analytics firm Presight saw its net income after tax fall 16.4% y-o-y to AED 109.1 mn in 3Q 2024, on the back of the introduction of the corporate tax this year and lower interest income accounting for 14.3% of the decline, according to its financials (pdf) and earnings release (pdf). The company’s revenues increased 2.4% y-o-y to AED 566.2 mn, supported by growth in in multi-year contracts, a favorable deployment mix, and “robust revenue generation from AIQ,” in which it acquired a 51% stake in June for USD 350 mn.

In 9M 2024, the company’s net income after tax increased 5.8% y-o-y to AED 285.5 mn, while revenues grew 9.6% y-o-y to AED 1.2 bn.

EMIRATES INS. COMPANY-

Emirates Ins. Company recorded a 4.4% y-o-y increase in net income to AED 29.2 mn in 3Q 2024, according to its financial statements (pdf). The company’s revenues also rose during the quarter, standing at approximately AED 351 mn, up 17.5% y-o-y.

On a nine-month basis, the company saw its net income fall 7.4% y-o-y to AED 81.6 mn, while revenues increased 13.4% y-o-y to AED 978.1 mn. A 20% y-o-y increase in investment earnings helped partially offset the negative impact of severe weather events across the country this year, including April’s storm, the company said.