Dubai Holding Commercial Operations Group, or DHCOG, on Monday declared more than fourfold increase in net profit for 2012 and indicated continued growth for 2013.
Net profits surged 488 percent to Dh1.2 billion in 2012, compared to Dh204 million in 2011, due to an increase in revenues, tighter cost control and reduction in impairment charges. DHCOG is one of the units of Dubai Holding, which is a global investment holding company.
Key financial highlights :
- Net profit grew considerably to AED 1.2bn (2011: AED 204m)
- Total revenues increased to AED 9.2bn (2011: AED 8.8bn)
- Recurring revenues increased to AED 6.3bn (2011: AED 6bn)
- Total debt decreased by AED 1.1bn, reducing debt to equity ratio to 0.8
“Our turnaround strategy has made considerable strides in 2012 and our businesses across the commercial operations group are increasingly well positioned. This, together with the strengthening of Dubai as the region’s financial, business and tourism hub, gives me confidence that we are set for the next phase of future growth.” — Dubai Holding chairman Mohammad Abdulla Al Gergawi, in a statement
DHCOG’s total revenues for 2012 increased to Dh9.2 billion compared to Dh8.8 billion in 2011. Its total assets stood at Dh86.33 billion and the group continues to deleverage, having successfully paid down a $500 million bond in February 2012. DHCOG concluded the year with a healthy cash balance of Dh1.7 billion, according to the statement.
“Over the last few years, we have focused our strategy on driving revenue, improving operations across all of our businesses and addressing our financial commitments. The results of this strategy are increasingly evident in our numbers and are testament to the group’s overall recovery. We will continue supporting our business lines, all of which continue to progress positively in the strengthening market environment.” — Dubai Holding chief executive officer Ahmad bin Byat
Total DHCOG debt currently stands at Dh11.7 billion, a reduction during the course of 2012 of Dh1.1 billion, thereby improving the debt to equity ratio to 0.80. Contractor liabilities of Dh2.1 billion were settled. Overall current liabilities decreased by 20 percent.
Jumeirah Group strong and outstanding performance during 2012 was marked by the launch of five hotels across Europe and the UAE, and a 3.8 percent increase in overall Revenue Per Available Room (RevPAR) compared to 2011. Jumeirah’s portfolio of owned hotels recorded extended periods of full occupancy, with occupancy averaging at 73.2 per cent during 2012, with the last quarter of the year averaging 80 percent. As a result, Jumeirah achieved a substantial growth in its room as well as food and beverage revenues.
Jumeirah will continue to focus on driving profitable revenues from its existing portfolio of luxury hotels, resorts and restaurants, while optimising costs, and generating a strong flow of management fees with the opening of new luxury hotels.
Tecom Investments continued to enhance its service offerings throughout 2012 resulting in yet another strong year across its business parks.
Tecom’s performance in 2012 was driven by stable revenues and improved occupancy rates. During the year, Tecom enjoyed high occupancy rates averaging 95 percent in Dubai Internet City, Dubai Knowledge Village and Dubai Media City, compared to 88 percent last year. This is significantly higher than Dubai’s average occupancy rate of 69 percent. Tecom will continue to boost its diversified customer base and maintain its market leadership position through its unique offerings and competitive pricing strategy.
Dubai Property Group revenues have increased due to the handover of some of its build-to-sell projects.
During this year, DPG also made good progress in its residential leasing business, a major component of its leasing portfolio, saw occupancy levels above 98 percent. Its facilities and property management business also demonstrated significant growth in 2012. It has also announced the relaunch of Mudon, a villa development, and Bay Square to the market.
Emirates International Telecommunications portfolio companies recorded encouraging performance during 2012. Both du and Axiom Telecom declared dividends for the first time in 2012 and Interoute posted double digit top line growth. Tunisie Telecom continued to face local social and economic challenges, but did manage to post an improvement in revenues and customer growth over 2011. Go Malta turned in positive results.
EIT will continue to focus on value creation by supporting its portfolio companies to ensure each of them delivers strong and consistent performance, in line with EIT’s expectations.
Ahmad bin Byat concluded: “With positive economic indicators and trends across different sectors, Dubai is proving its resilience and in turn the outlook for DHCOG and its businesses continue to show promise. As we continue to improve the balance sheet and enhance the governance framework, we look forward to a continued recovery and growth in 2013 and beyond.”
ABOUT DUBAI HOLDING:
Established in 2004, Dubai Holding is a global investment holding company with interests in 24 countries.
Employing 15,000 people from 121 nationalities, Dubai Holding is managed through two business groups:
- Dubai Holding Commercial Operations Group (DHCOG)
- Dubai Holding Investment Group (DHIG)
DHCOG’s four operating units are :
Dubai Holding Investment Group oversees Dubai Holding’s financial assets. These include investments and diversified financial services. Its operating units include :