Abdulmohsen Alhokair Group for Tourism and Development announces the annual financial results for the period ending on 31-12-2017
| Element | Current year | Previous year | % Change |
|---|---|---|---|
| Net profit (loss) | 8.7 | 126.3 | -93.11 |
| Earning or loss per share, Riyals | 0.16 | 2.3 | - |
| Gross profit (loss) | 268.5 | 374.2 | -28.25 |
| Operational profit (loss) | 6.6 | 120.4 | -94.52 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of annual financial results | The decline is due to the decline in demand from individuals and corporate sector on hotels as a result of the decline in spending from government and private sector on conferences, meetings and exhibitions. Also the increase in market competition has resulted in the decline in the Average daily room rate and occupancy. In addition the cancelation of first term school holidays negatively affected the entertainment business. Also the decline in profitability was due to the ramp up period of the newly opened locations. Also, there was a decline in profit from associates. The company took some actions concerning cost cutting such as; clustering of jobs and controlling electricity and utilities consumption. It is worth mentioning that revenues of existing hotels and entertainment centers have declined by SAR 150 Million during the period but this decline has been offset by an increase of SAR 95 Million from the new openings in hotels and entertainment. However, due to the ramp up period and pre operation expenses of these new openings and the low level of revenues achieved, their positive effect on the profitability has yet to be attained. |
| Reclassifications in annual financial results | Certain comparative figures have been reclassified to conform to the presentation in the current period. |
| Other notes | Total revenues during current period amounted SR 1,124 million compared with SR 1,174 million for same period of last year with a decrease of SR 50 million and decrease percentage of 4.2% Gross Profit during current period amounted SR 268.5 million compared with SR 374.2 million for same period of last year with decrease of SR 105.7 million and decrease percentage of 28.2% EBITDA during current period amounted SR 183.8 million compared with SR 288.9 million for same period of last year with decrease of SR 105.1 million and decrease percentage of 36% Operational Profit during current period amounted SR 6.6 million compared with SR 120.4 million for same period of last year with decrease of SR 113.8 million and decrease percent of 94.5% Net Profit during current period amounted SR 8.7 million compared with SR 126.3 million for same period of last year with decrease of SR 117.6 and decrease percentage of 93.1 %. Total Shareholders Equity (Minority interests are not available) amounted SR 669.6 million by end of this period compared with SR 698.4 million as at the end of same period last year with decrease of SR 28.8 million and decrease percentage of 4.1%. Total Comprehensive income during current period amounted to SR 6.97 million compared with SR 122.82 million for same period last year with a decrease of SR 115.8 million and decrease percentage of 94% EPS for the current period amounted SR 0.16, compared with SR 2.30 for the same period of last year. |
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