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00:00 Despite the decline in real estate value in nine months by about 3%, the company recorded a rise in net profits and profit margin, which led to better results than the analysts expected.
00:17 Let's look at the numbers, whether for the first nine months or even the third quarter.
00:23 These are the individual revenues, as we notice, they rose 15%, reached 6.1 billion dirhams.
00:30 The individual profits from the third quarter came higher than the average of the analysts' expectations by about 67%.
00:37 It recorded 3.3 billion dirhams and rose 121%.
00:43 Of course, these are the profits that are practically compared to 1.5 billion dirhams recorded by the company from the third quarter of 2022.
00:52 What is striking is that if we look at the numbers of the nine months, we had a rise in profits,
00:58 despite the fact that the revenues for real estate values declined by 3% in nine months and reached 18.3 billion dirhams.
01:07 How did this company achieve this? How did it manage to raise profits despite the decline in revenues?
01:13 First, we had a noticeable improvement in net profits, specifically in the gross profit margin, which rose 62% from 50.6%.
01:24 In practice, we noticed a decline in direct costs much higher than the decline we saw in revenues,
01:31 and thus we saw this rise in the total profit, which reached 11.4 billion dirhams.
01:37 We also had a rise in other revenues, 88% of which were 100%. We had a net revenue of 330 million dirhams.
01:46 We had a decline in sales and marketing expenses of 11% of which were 100%.
01:51 As a result, these factors raised the bottom line in the time we saw in the decline in revenues in nine months by about 3% of which were 100%.
02:01 We also looked at the distribution of real estate revenue revenues according to the sector.
02:07 If we look at the development revenues, we saw a decline in revenues by 21% in nine months.
02:15 In the international revenues, we saw a decline in revenues by about 34% in nine months.
02:21 What is interesting is what Eomar mentioned in the statement, that it has accumulated sales of about 69.5 billion dirhams.
02:29 This means that we will see an increase in revenues by the end of this year and perhaps by the first quarter of the next year,
02:36 because we have an accumulation of accumulated sales.
02:40 On the other hand, the company pointed out that the revenues of the company have increased by 26%,
02:46 which reflects the process of rentals, because we have a decline in the tourism sector,
02:50 which also gives support for the revenues of the company.
02:55 We have heard statements from Mr. Mohamed Al-Abbar on the Arabian CNBC screen.
03:01 The most prominent thing he said was that 98% of real estate in Dubai is still good compared to international cities,
03:10 but he pointed out that he was surprised by the record highs we saw in the prices of the vacant real estate.
03:18 If we look at the topic of interest rates and how they affect, Mr. Mohamed Al-Abbar said that
03:25 we do not see a significant effect on the increase in real estate and interest rates on the real estate sector,
03:32 because most investors in the region do not rely on bank loans,
03:36 which means that buying is done in cash and not through mortgages or real estate loans.
03:41 Therefore, there is no doubt about the effect of the increase in interest rates on mortgages.
03:46 This is what we were following globally in general, in terms of its impact on the real estate sector.
03:51 So, the results are better than analysts expect, not significantly.
03:55 And if we look at the cumulative sales, this gives us a picture that even the results of the fourth quarter will be positive.