Jabal Omar Development Company, one of the largest real estate developers in the Middle East and one of the largest listed companies in the Saudi stock market (Tadawul), announced a net profit of SAR 193.78 million for the year ending 2018.
The net profit increased by 245% due to off-plan residential sales of SAR 1,209 million (There were no residential sales in the previous period), 28% increase in hotel revenue and 60% from shopping mall revenue.
The 2018 financial results also highlighted a decrease in the cost of revenue ratio to 59% as compared to 98% in the previous period mainly due to the sales of residential units, which have a higher profit margin. In addition, operating cost decreased by 108% mainly due to an increase in other income by SR 243 million.
Jabal Omar Development Company has achieved major milestones in the development stages of the project, where the completion rate of all seven phases of the project has reach 50%. The first phase is 100% completed and fully operational while the remaining completion rate of the phases are 72% of the second phase, 68% of the third phase and 72% of the fourth phase. Jabal Omar Development Company will be opening the latest brand of Jabal Omar hotels prior, to the Holy month of Ramadan this year.