Riyadh – Mubasher: Emaar The Economic City’s interim financials showed net losses after Zakat and tax of SAR 282 million in the first quarter (Q1) of 2020, versus net profits of SAR 7 million in the corresponding period in 2019.
Sales of the company came at SAR 205 million in the first three months of 2020, decreasing by 41.5% year-on-year (YoY), according to a bourse statement on Monday.
The real estate developer could not generate revenues from one major sales transaction as it contains some contractual terms that are still in place. This has reduced the Q1-20 sales and gross profits, coupled with a slowing activity in the real estate sector overall and the coronavirus (COVID-19) pandemic.
Furthermore, the company saw higher financial expenses as a result of declining borrowing costs capitalisation, mainly ascribed to slower development activity and non-availability of new long-term loans.
