Riyadh – Mubasher: Abdul Mohsen Al Hokair Group for Tourism and Development Co. on Thursday posted a sharp year-on-year drop in profits for the full-year 2017.

The group’s profits amounted to SAR 8.7 million last year, down 93.1% from SAR 126.3 million in 2016, according to a statement to the Saudi Stock Exchange (Tadawul).

Al Hokair attributed the drop in profits to a decrease in demand for hotels from individuals and corporate sector on the back of lower government and private sector's spending on conferences, meetings, and exhibitions, as well as a rising market competition.

“The company took some actions concerning cost cutting such as clustering of jobs and controlling electricity and utility consumption,” the statement added.

Al Hokairs’ revenues declined 4.2% or SAR 50 million to SAR 1.12 million in 2017, compared to SAR 1.17 million a year earlier.

The group’s earnings per share (EPS) amounted to SAR 0.16 during 2017 versus SAR 2.30 in the prior year.