Dubai mall firm Majid Al Futtaim H1 revenue rises 7%

Dubai-based mall operator Majid Al Futtaim reported a 7 per cent rise in half-year revenue on Wednesday as income increased from its supermarket franchise and leisure businesses.

The privately-owned firm said in a statement revenue for the six months to June 30 was Dhs 13.7bn($3.7bn). It did not disclose net profit.

The company’s half-year earnings before interest tax depreciation and amortisation (EBITDA) were stable at Dhs 1.8bn.

Majid Al Futtaim, owner and operator of 17 shopping malls and 11 hotels in the Middle East and north Africa (MENA), also holds the franchise for French supermarket chain Carrefour in MENA and central Asia.

The Dubai firm’s property business, which includes its mall and hotel assets, generated half-year revenue of Dhs 2bn and EBITDA of Dhs 1.2bn, which were flat year-on-year.

The malls attracted 85 million visitors in the first six months of 2015, up 2 per cent from a year earlier.

Sales at its Carrefour operations rose 7 per cent year-on-year to Dhs 11.2bn and EBITDA increased 3 per cent to Dhs 563m over the same period.

Majid Al Futtaim said the slower growth in EBITDA was due to costs associated with opening 15 new Carrefour stores in the first half of 2015. It now operates 143 Carrefour outlets in 13 countries.

Majid Al Futtaim’s ventures business, which includes its cinema, leisure and healthcare units, generated half-year revenue of Dhs 609m, up 21 per cent.