| Reasons of increase (decrease) for quarter compared with same quarter last year |
The decrease in net income of this quarter as compared to the same quarter last year was mainly due to the increase in returns from long term investments in the comparative period as the result of timing difference in dividend declarations, in addition to decrease in the percentages of amounts distributed in this quarter; despite the improvement in revenues from hotels and commercial centers and the increase in returns from short term investments. |
| Reasons of increase (decrease) for period compared with same period last year |
The decrease in net income for this period was mainly due to the capital gain realized from the sale of Bakkah Arac hotel by ARAC company - a subsidiary - and the receipt of compensations by ARAC for the expropriated lands in favor of the expansion of the Prophet's holy mosque; in addition to the decrease in the long term investment returns due to timing difference in declarations and decrease in the percentages of amounts distributed. However, the improvement in gross and operating profits for this period compared to the same period last year was due to the increase in operating revenues of the hotels and commercial centers. |
| Reasons of increase (decrease) for quarter compared with previous quarter |
The main reason for the increase in net income this quarter was mainly due to the increase in the gross profit margin as compared the second quarter of this year 2016. |
| External auditor's report containing reservation |
The Company would like to point out that the external auditor have made an observation in their audit report that reads: ,The Company owns long term equity investments in listed companies, the market values of some of which have declined as disclosed in note 3. The Company is regularly evaluating whether this decline is not temporary. Note 3 clarifies as follows: (These unrealized losses are recorded in the shareholders' equity, and the Company believes that the period of the decline is not long enough to give comfort that the decline is not temporary. Thus, the Company is reguraly evaluating the decline and will make the necessary adjustment - if any - when there is a clear evidence that the decline is not temporary). |
| Reclassifications in quarterly financial results |
Some figures in the comparative period (2015) were reclassified for comparability. |
| Other notes |
Gross revenue of the current quarter is SR. 138.8 million compared to SR. 136.45 million for the same quarter last year with an increase of 1.72%. Gross revenue of this period is SR. 413.14 million compared to SR. 370.03 million for the same period last year with an increase of 11.65%. The shareholders equity (Excluding minority interests) for this period is SR.3,639 million compared to SR. 3,873 million for the same period last year with a decrease of 6.04% |
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