INCREASE IN FOOTFALL BUT FLAT Q1 FOR EMAAR MALLS

▶ Net income was up slightly in the three months to March at Dh548m

Emaar Malls, the Dubai retail business 85 per cent owned by Emaar Properties, posted first-quarter net income yesterday that was short of analysts’ estimates.

It was up slightly in the three months to March at Dh548 million, compared with Dh539m a year earlier, Emaar Malls said in a filing to the Dubai Financial Market, where its shares are traded. Analysts estimates for net profit was Dh581.5m.

Revenue surged to Dh1.04 billion, compared with Dh836m a year ago, an increase of 24 per cent, mainly due to the consolidation of revenue from online fashion retailer Namshi that the company acquired in August, Emaar said.

Footfall at Emaar Malls assets – which include Dubai Mall, Souk Al Bahar, the Gold and Diamond Park, Dubai Marina Mall and various community shopping centres – reached 35 million visitors during the first quarter, up 3 per cent on the same period last year.

“We have been shaping the retail sector of Dubai by building world-class retail and leisure destinations as well as ensuring that they offer retail choices that meet the aspirations of today’s tech-savvy youth.

“We will continue to implement innovative approaches that bring back the charm of retail as a family activity, with a focus on delighting our customers, bringing digital innovation and driving deep customer personalisation and efficiency,” said Mohamed Alabbar, chairman of Emaar Properties and a member of Emaar Malls’ board.

Shares for the company closed up 1.2 per cent at Dh5.64.

Emaar Malls approved a cash dividend of Dh1.3bn, equivalent to 10 per cent of share capital, for the third consecutive year at its annual general meeting in April.

Namshi recorded sales of Dh176m in the first quarter, an increase of 23 per cent compared to the same period last year. In 2017, Emaar bought a 51 per cent stake in Namshi for $151m, wrapping up its hunt to land a significant e-commerce asset after it tried to buy Souq. com last year, which was acquired by Amazon.

Emaar Malls in February reported a 27 per cent increase in fourth quarter net profit, to Dh574m from Dh452m in the year-earlier period. Revenue rose 35 per cent to Dh1.12bn from a year earlier.