| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 158.11 | 163.84 | -3.497 | 163.6 | -3.355 |
| Gross Profit (Loss) | 44.59 | 25.22 | 76.804 | 46.48 | -4.066 |
| Operational Profit (Loss) | 5.9 | -17.2 | - | -33.52 | - |
| Net profit (Loss) | 4.22 | -34.34 | - | -67.3 | - |
| Total Comprehensive Income | 3.87 | -34.78 | - | -66.02 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (After Deducting the Minority Equity) | 207.3 | 255.38 | -18.826 |
| Profit (Loss) per Share | 0.01 | -0.11 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Percentage of the capital (%) | Amount | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | 34.9 | -109.94 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | • Achieving revenues of 158.11 million Saudi riyals during the current quarter compared to revenues of 163.84 million Saudi riyals during the same quarter of the previous year with a decline of 3.49% mainly due to. |
• Exiting three hotels with low performance and profitability with the aim of improving the profit margin, and the Revenue of these hotels amounted to 9.8 million riyals during the same quarter of the previous year.
• Occupancy rates and average room rates for hotels operating in the Group increased during the current quarter, which contributed to the hotel sector achieving revenues worth 91.6 million Saudi riyals.
• The entertainment sector’s revenues increased during the period preceding the holy month of Ramadan, which contributed to reducing the negative impact of the seasonality of activity resulting from the coincidence of 20 days for the holy month of Ramadan during the current quarter compared to 10 days during the same quarter of the previous year.
• Gross profit increased by 19.4 million Saudi riyals (77%), as the Group achieved a gross profit of 44.6 million Saudi riyals (representing 28% of Group revenues) during the current quarter compared to a gross profit of 25.2 million Saudi riyals (representing 15% of Group revenues) during the same quarter of the previous year, and the profit margin improved due to lower operating costs as a result of the Group’s continuous efforts to improve the efficiency of its operations and reduce its operating expenses, and also the Group’s re-estimation of the useful life of some categories of fixed assets such as buildings, machinery and equipment during the fourth quarter of the year 2023 in proportion to its nature.
• Operating profit increased by 23.1 million Saudi riyals, as the Group achieved operating profit of 5.9 million Saudi riyals compared to operating losses of 17.2 million Saudi riyals during the same quarter of the previous year, which resulted mainly from an increase in gross profit in addition to the decrease in losses resulting from debt provisions for accounts receivables.
• The company obtained compensation for damages, losses, and business interruption for the fire in one of its hotel facilities in Riyadh, amounting to 19.1 million Saudi riyals.
• The total comprehensive profit increased by 38.65 million Saudi riyals, as the Group recorded a total comprehensive profit of 3.87 million Saudi riyals, compared to a total comprehensive loss of 34.78 million Saudi riyals during the same quarter of previous year, which resulted mainly from the increase in net profit.
Item Two – Earning per share: Earnings per share amounted to 0.01 Saudi riyals per share as of the end of the current quarter of the year 2024, compared to a loss of 0.11 Saudi riyals per share as of the end of the same quarter of the previous year.
Item Three – Shareholders’ Equity: Total shareholders’ equity amounted to 207.3 million Saudi riyals as the end of the current quarter, compared to 255.38 million Saudi riyals as at the end of same quarter of the previous year, a decrease of 48.08 million Saudi riyals (18.83%).
Item Four – Accumulated losses: The accumulated losses amounted to 109.94 million Saudi riyals as at the end of the current quarter, which represents 34.9% of the Group’s subscribed capital, amounting to 315 million Saudi riyals.
The main reasons that led to these losses:
Noting the Group's initiatives to increase its revenues, reduce operational costs, improve profitability margins, and close low-performing sites, which contributed to improving operational results and achieving operational profits, several factors contributed to recording accumulated losses, including:
1. The Group’s losses from the cinema sector resulting from its investment in the joint project (Luxury Entertainment Company LLC), in which total losses amounting to 32.7 million Saudi riyals were recorded during the year 2023 and 3 million Saudi riyals during the current quarter.
2. The Group has increased provisions in exchange for the delay of some of its clients with legal personality in paying commercial receivables.
3. The increase in the cost of financial burdens, which resulted from the increase in interbank financing rates (SAIBOR).
4. Non-recurring losses resulting from the closure of a number of sites and recording provisions for impairment of property and equipment based on impairment tests in accordance with the International Financial Reporting Standards.
Measures that the Company will take to reduce accumulated losses:
1. Re-evaluate the work of the Group’s sources of income and contribute to raising its efficiency and effectiveness.
2. Continue to restructure the company’s sectors to improve effectiveness and efficiency in operational and administrative aspects.
3. Continue to evaluate the Group’s projects and exit from poorly performing projects that generate operational losses.
Application of procedures and instructions:
The procedures and instructions for companies whose shares are listed on the Saudi Stock Exchange and whose accumulated losses amount to 35% or more of their capital will be applied.
2. The Hotel sector’s revenues increased by 7.78 million Saudi riyals, or 9.3%, mainly due to the increase in occupancy rates and the average daily room rate in the Group’s hotels operating in various regions of the Kingdom.
3. The Entertainment sectors has relatively been affected by the seasonality and timing of 20 days of the month of Ramadan during the quarter as compared to the previous quarter.
1. Gross profit decreased by 1.89 million Saudi riyals (4.1%), as the Group achieved a gross profit of 44.59 million Saudi riyals (representing 28.2% of the Group’s revenues), compared to a gross profit of 46.48 million Saudi riyals during the previous quarter.
2. Operating profit increased by 39.42 million Saudi riyals, as the Group achieved operating profit of 5.9 million Saudi riyals, compared to operating losses of 33.52 million Saudi riyals, which resulted mainly from recording provisions for losses of 15.8 million riyals during the previous quarter resulting from the company’s exit from the Cinema sector through the joint venture, the Luxury Entertainment Company, as well as the recording of provisions worth 15.8 million Saudi riyals during the previous quarter in exchange for the delay of some clients with legal entities in paying the receivables due in accordance with the International Financial Reporting Standards.
3. The Company obtained compensation for damages, losses, and business interruption from the fire in one of its hotel facilities in Riyadh, amounting to 19.1 million Saudi riyals.
4. The comprehensive profit increased by 69.89 million Saudi riyals, as the Group recorded a total comprehensive profit of 3.87 million Saudi riyals, compared to a total comprehensive loss of 66.02 million Saudi riyals, which resulted mainly from the increase in net profit.
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