Riyadh – Mubasher: Saudi Arabia-based Abdul Mohsen Al Hokair Group for Tourism and Development Company on Tuesday reported a 79.05% year-on-year plunge in its net profits for the second quarter of 2018.

Al Hokair Group’s profits amounted to SAR 3.1 million in Q2-18, down from SAR 14.8 million during Q2-17, according to a statement to the Saudi Stock Exchange (Tadawul).

Quarter-on-quarter, the Saudi company turned to profits in the period between April and June, after suffering a net loss of SAR 7.52 million in Q1-18.

The firm attributed the second-quarter profit decrease to lower demand from the corporate sector and individuals on existing hotels on meetings, exhibitions, and conferences.

Al Hokair Group also ascribed the profit drop to a fierce competition that led to a decrease of average daily and occupancy rates, coupled with a decline in its net profit stake in a joint venture (JV).

Revenues rose 6.3% to SAR 307.6 million from in the three-month-month period ended last June, compared to SAR 289.4 million in Q2-17.

During the first six months of 2018, the Tadawul-listed firm incurred a net loss of SAR 4.4 million, against generating SAR 22.8 million in profits in H1-17.

Revenues grew 5.6% to SAR 578.6 million in the January-June period of this year, versus SAR 547.7 in the year-ago period.

The stock inched up 0.40% to close Tuesday at SAR 20.02.