Altayyar Travel Group announces the annual financial results for the period ending on 31-12-2017
| Element | Current year | Previous year | % Change |
|---|---|---|---|
| Net profit (loss) | 497 | 814 | -38.94 |
| Earning or loss per share, Riyals | 2.37 | 3.88 | - |
| Gross profit (loss) | 1,603 | 1,671 | -4.07 |
| Operational profit (loss) | 679 | 905 | -24.97 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of annual financial results | The Companys revenues (as classified according to International Financial Reporting Standards) for the full year 2017 was SR 2.11bn a 2% decline as compared with the previous year principally due to a decline in revenue from our core government business. This was offset by a tripling of revenue from the hospitality division and a 48% jump in car rental revenue. Furthermore it should be noted here that the Groups online bookings through its online platform have increased by 180% yearonyear to SR 1387 million as compared with SR 496 million in 2016. The travel sector has enjoyed rapid growth as part of the Groups strategy to focus on online sector. The net profit for the year end of SR 497 million a 39% decreased as compared to previous year due to following reasons: A 2% decline in revenue More competitive pricing for some services in order to protect and increase the market share which affected our margins A change in product mix and margin due to high share of online sales and travel services in United Kingdom as a result of the consolidation of Portman Groups acquisition during end of 2016. A increase in SG&A (23% higher) as compared to last year due to the consolidation of Portman Group and start of commercial operation of hospitality assets SR 128 million loss recorded during the year for equity accounted investees (in reference to our Investments) as compared to SR 53 million loss recorded during last year. This is expected to significantly drop down going forward. Excluding the impact of equity losses recorded on equity accounted investment SR 128 million (2016: SR 53 million) the net profit of the Company has decreased by 28% as compared to previous year. |
| Reclassifications in annual financial results | Certain comparative figures are reclassified to conform current year classification. |
| Other notes | 1 The revenue for the current year is SAR 2107 million as compared to SAR 2144 million in previous year a decline of 2%. 2 The gross profit for the current year is SAR 1603 million as compared to SAR 1671 million in previous year a decline of 4%. 3 The operating profit for the current year is SAR 679 million as compared to SAR 905 million in previous year a decline of 25%. 4 The net profit after zakat and tax for the current year is SAR 489 million as compared to SAR 816 million in previous year a decline of 40%. The net profit after non controlling interest for the current year is SAR 497 million as compared to SAR 814 million for the previous year a decline of 39%. 5 The total comprehensive income for the current year is SAR 530 million as compared to SAR 736 million for the previous year a decline of 28% 6 Earnings per share for the current year is SR 2.37 per share as compared to SR 3.88 per share in the previous year. 7 The shareholders equity (without non controlling interest) as of end of current year is SAR 6035 million as compared to SAR 5602 million in previous year (without minority interest) an increase of 8%. Earnings per share attributable to shareholders of the Company for the current and comparative period has been calculated by using the number of ordinary shares outstanding as at 31 December 2017 of 209.65 million shares (2016: 209.65 million shares). Items elements and notes of the comparatives Consolidated Financial Statements have been redisplayed regrouped and reclassified to meet with the applied accounting policies for the current period which have been prepared according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia. For more information please see the note 38 (First Time Adoption of IFRS) in the Consolidated Financial Statements for the year ended in 31 December 2017. |
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