Emaar EC incurs SAR 123.3M loss in Q1 2025

Emaar The Economic City (Emaar EC) narrowed its net loss to SAR 123.3 million in Q1 2025, compared to SAR 351.7 million a year earlier.

The lower losses came as Emaar EC’s topline expanded in Q1 2025 on higher earnings from sale of residential lands and units. This is besides revenue recognition from progress on projects and revision in certain cost estimates.

Additionally, operating revenue increased year-on-year (YoY) in Q1 2025, mainly driven by lease contracts signed in the industrial valley segment, paired with higher student intake in one of the subsidiaries operating in the education sector.

During the three-month period, the company reported a SAR 20 million decline in operating expenses on lower professional fees for the activities related to the Capital Optimization Plan initiatives. This is in addition to a decrease in marketing expenses and employee-related costs.

Moreover, during the same quarter, Emaar EC reversed the provision for expected credit losses, following a reassessment compared to the recorded provision in Q1 2024.

Emaar EC also witnessed a SAR 15 million hike in other income in Q1 2025, due to gains on the disposal of investment property and reversal of certain excess provisions.

Furthermore, Zakat charges fell by SAR 72 million during the three-month period, mainly because Q1 2024 included a one-off charge of SAR 66 million related to settling open Zakat assessments.

On the other hand, finance costs soared by SAR 11 million for Q1 2025, primarily due to the higher loan balance and the SAR 18 million losses incurred from equity-accounted investees.

Sequentially, the company turned to losses against a bottom line of SAR 18.22 million in Q4 2024, as the Q1 2025 revenues dropped by SAR 43 million on a quarterly basis.

Shareholders' equity (no minority interest) shrank to SAR 5.13 billion by the end of Q1 2025, compared to SAR 6.05 billion a year earlier.

Accumulated losses came in at SAR 108 million as of March 31, 2025, representing 2.06% of the company's capital.

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