Dubai: Majid Al Futtaim on Wednesday said that its six months revenues were up 14 per cent to AED12.8billion compared to the first half of last year.
The company reported its preliminary and unaudited operational and financial results for the first half of the year 2014, confirming strong performance across its businesses.
“The first half of 2014 displayed another period of robust growth for us and even more importantly it happened on the back of a strong 2013,” Iyad Malas, Chief Executive Officer Majid Al Futtaim Holding LLC, said.
Also, it’s EBITDA from recurring operations increased by 13 per cent to Dh 1.8 billion.
Majid Al Futtaim’s performance in the first half of the year is credited to the growth across its three business segments, Retail, Properties and Ventures.
Properties, MENA’s leading diversified real estate and property Services Company, saw its revenue increase by a strong 10% to AED 1.9 billion and EBITDA rise by around 12% to AED 1.2 billion. The company’s malls saw footfall of 83 million through the period, an increase of 6 % from 2013 first half levels, while revenue per available room at the company’s 11 hotels increased by 15 % from prior levels, with year-to-date occupancy rates of over 80%.
Ventures are a diverse group of companies that complement the core business via a leading presence in cinemas, leisure and entertainment, as well as businesses in financial services, fashion and healthcare. In the first half of 2014, Ventures achieved strong operational growth with revenue increasing by 21% to AED 506 million. EBITDA for the year was at AED 63 million, an increase of around 13% driven by the investments made for future growth.
“We continue to make significant progress with growth in the retail and leisure markets across the region. In the first half of 2014, we received official endorsement from Egypt’s Government for our multi-billion Egyptian pound investment plan, we progressed on lucrative land banking opportunities in Saudi Arabia, and the first anniversary of Beirut City Centre was held under the patronage of President Michel Sleiman. While Dubai remains the core of our business, these cornerstones in Majid Al Futtaim’s investment strategy in Egypt, Saudi Arabia and Lebanon underlines our confidence in these countries to become investment hubs capable of accommodating major commercial and touristic projects. We are continuing our organic expansion plans focusing on our commitment to create great moments for everyone everyday, with careful attention to quality, with responsibility to community and last but not least, prudent financial and risk management approach, which is typical of Majid Al Futtaim,” Malas, said.
Majid Al Futtaim issued its first 10 year $500 million bond in May 2014. This was the first 10 year issuance out of Dubai since 2010; and the longest tenure achieved by a Dubai corporate issuer. The issuance capitalised on the investor education and company’s credibility built over the last couple of years and was a successful intraday execution.
“In line with our previously stated goals, this issuance was directed at lengthening the average life of the company’s debt and enabling further portfolio optimization. It has allowed us to build a credit curve for the company, creating a market reference for future financing. Hence it was a significant milestone for the company,” Shrimati Damal, Head of Treasury, Majid Al Futtaim Holding, said.