Key financial highlights:• Net profit increase to Dhs204m
• Recurring revenues increase to Dhs6bn; Total revenues amount to Dhs8.8bn
• Total assets stand at Dhs97.4bn
• Total debt decrease by Dhs1.24bn
• Debt to Asset ratio improves to 0.13; Debt to Equity ratio improves to 0.93
Commenting on the steady performance, Ahmad Bin Byat, Chief Executive Officer of Dubai Holding, said: "The positive results of 2011 demonstrate DHCOG's resilience and strong business fundamentals across the portfolio. Despite continued challenging economic conditions globally, 2011 proved to be a good year for DHCOG. The deleveraging of our debt commitments has been one of the highlights of 2011 and will continue to be our priority in the years to come."
RevenuesOur recurring and sustainable revenues improved by 7% in 2011. Total revenues for the year amounted to Dhs8.8bn, of which Dhs6bn were recurring revenues. In line with our strategy of strengthening the recurring income streams, properties and land sales represented only 31.6% of our total revenue in 2011, compared to 58.1% in 2010.
Bin Byat commented: "The Group is well positioned, with long-term recurring revenues and a diverse portfolio of income-generating assets, to build on the healthy performance of our underlying businesses. We have a robust balance sheet, which provides us with the flexibility to support our businesses in delivering strong performance and revenues."
Assets, Liabilities and DebtDHCOG's total assets stood at Dhs97.4bn. Current liabilities decreased from Dhs31.2bn in 2010 to Dhs26.6bn in 2011, down 15% due to a decline in trade payables, customer advances and contractor liabilities. DHCOG concluded the year with a strong cash balance of Dhs2.3bn, an increase of 50.5% compared to Dhs1.5bn in 2010.
Total debt decreased by Dhs1.2bn from Dhs14bn in 2010 to Dhs12.8bn in 2011, of which Dhs2.4bn is short- term borrowing. Debt to Asset ratio improved to 0.13 and Debt to Equity ratio improved to 0.93.
DHCOG deleveraged its debt commitments, by paying down the CHF 250 million bonds in July 2011 through cash generated from operations and from sales of non-core assets. It further paid down $500m bonds which matured in February 2012. Repayment of the bonds, along with consistent and strong operating performance, triggered positive rating actions by Fitch Ratings and Moody's Investors Service, both of which placed DHCOG on a stable outlook in February 2012.
Bin Byat added: "The Company has robust hotel management, telecommunications, free zone and property businesses that contribute a healthy cash flow. DHCOG is committed to meeting its financial obligations as and when they fall due."
2011 operational highlights:Jumeirah Group's performance was driven by the strong occupancy rate of 78%, above industry average rates. Jumeirah recorded a 5% increase in its Revenue Per Available Room (RevPAR), compared to 2010. Consequently, Jumeirah achieved strong growth of 9% in its room revenue as well as 7% in food and beverages revenue.
DPG significantly contributed to the Group's revenue through its growing recurring revenues from leasing, land sales and facility management businesses, as well as from the handover of some of its projects. Its leasing portfolio saw strong increase in occupancy rates of up to 90% in residential; while the facilities and property management business grew by 22.1%.
TECOM's revenue for 2011 was driven by strong occupancy rates across its mature business parks and a low churn rate of its partners. It continues to enjoy high occupancy rates averaging 88% in Dubai Internet City, Dubai Knowledge Village and Dubai Media City, which represent superior levels compared to Dubai's average commercial occupancy rate of 56%.
EIT had a successful partial exit from Axiom Telecom at an attractive valuation. Despite a challenging political environment, Tunisie Telecom delivered a solid performance, while du captured 46% mobile users market share in the UAE.