Riyadh-Mubasher: Al Hammadi Company for Development and Investment, working in the hospital business, posted a 47% decline year-on-year in its first-quarter profits, according to a bourse statement.

Profits reached SAR 21.56 million ($5.74 million) in the first quarter of 2016, compared to SAR 41.01 million ($10.93 million) in the same quarter of 2015.

The quarterly profit was shrunk by higher depreciation expenses and financial charges attributable to the opening of Al Hammadi Hospital Al Sweidi.

The hospitals’ owner and operator collected SAR 9.8 million written-off debt in Q1-15 which helped trim the general and administrative expenses.

However, gross profit grew 7.8% year-on-year in Q1-16 due to an 11% increase in revenues.