Abu Dhabi, UAETuesday 27 October 2020

Dubai Investments third quarter profit slides on lower revenue

Net profit for the three months reduced to Dh105.5 million

Khalid Bin Kalban, chief executive of Dubai Investments says the company is progressing well on its strategy to build a diversified investment portfolio. Randi Sokoloff / The National
Khalid Bin Kalban, chief executive of Dubai Investments says the company is progressing well on its strategy to build a diversified investment portfolio. Randi Sokoloff / The National

Dubai Investments, a diversified company in which sovereign wealth fund Investment Corporation of Dubai holds a stake, reported a 55 per cent slide in third-quarter net profit as revenue fell.

Net profit for the three months to the end of September 30, reduced to Dh105.5 million, Dubai Investments said on Thursday in a filing to the Dubai Financial Market, where its shares trade. Total revenue for the third quarter plunged 18 per cent to Dh691.3m year-on-year.

“Dubai Investments has been consistent in generating strong operational results and the trend has continued for this year as well,” said Khalid Bin Kalban, managing director and chief executive of Dubai Investments.

Dubai Investments booked a loss on sale of investments of Dh562,000 during the third quarter compared to a Dh186,000 loss last year impacting the profitability of the company.

The company also made a gain on fair valuation of investments of Dh16.1m in the third quarter compared to Dh12m reported during the same period last year.

During the nine-month period, the company reported a profit of Dh459m, down 37 per cent year-on-year. Revenues decreased to Dh2.12 billion during the nine month period from Dh2.42bn a year earlier.

“These profits include exceptional items related to gains on merger and acquisition transactions of Dh64m and Dh333m for the respective periods and results without considering these are quite comparable,” the company said.

The company's total assets at the end of September 30 reached Dh20.64bn, up 6 per cent since the end of 2018.

Mr Kalban said they are focused on delivering real estate developments to monetise assets and progress with its strategy to build a diversified investment portfolio capable of delivering sustainable returns to its stakeholders.

Updated: November 4, 2019 03:07 PM

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