Dur Hospitality Co. announces the interim financial results for the period ending on 30-06-2018 (Six Months)
| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) | 14,087 | 31,680 | -55.53 | 18,127 | -22.29 |
| Gross profit (loss) | 25,346 | 38,416 | -34.02 | 28,437 | -10.87 |
| Operational profit (loss) | 14,941 | 29,648 | -49.61 | 19,699 | -24.15 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) | 32,213 | 56,591 | -43.08 |
| Gross profit (loss) | 53,783 | 70,592 | -23.81 |
| Operational profit (loss) | 34,640 | 54,563 | -36.51 |
| Earning or loss per share, Riyals | 0.32 | 0.56 | - |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The decrease in net income during the current quarter compared with the same quarter of previous year was resulted from the decreased revenues of some of the Company hotel properties in Riyadh city due to the effect of declining demand from the business segment resulting from the continuous rise of keys in the hospitality market within Riyadh city specifically. In addition to that, the occurrence of partial closure to some hotel properties in Riyadh city due to renovation works carried on to face the increased competition in the hospitality market. On the other hand, the current quarter was affected by the adjustment of the accounting treatment regarding the financing costs related to the completed projects instead of capitalizing them on those projects. In addition, the accounting treatment of the remuneration of the BoD members has been adjusted in accordance with the IFRS requirements. Also it is worth mentioning that the same quarter of previous year was positively affected by the recorded profit from the sale of one of the company lands in Riyadh city amounted to SAR (3) million. |
| Reasons of increase (decrease) for period compared with same period last year | The decrease in net income during the current period compared with the same period of previous year was resulted from the decreased revenues of some of the Company hotel properties in Riyadh city due to the effect of declining demand from the business segment resulting from the continuous rise of keys in the hospitality market within Riyadh city specifically. In addition to that, the occurrence of partial closure to some hotel properties in Riyadh city due to renovation works carried on to face the increased competition in the hospitality market. On the other hand, the current period was affected by the adjustment of the accounting treatment regarding the financing costs related to the completed projects instead of capitalizing them on those projects. In addition, the accounting treatment of the remuneration of the BoD members has been adjusted in accordance with the IFRS requirements. Also it is worth mentioning that the same period of previous year was positively affected by the recorded profit from the sale of one of the company lands in Riyadh city amounted to SAR (3) million. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The decrease in net income during the current quarter compared with the previous quarter was resulted from the increase in G&A costs as a result of the increase in doubtful debt provision, in addition to the adjustment of the accounting treatment regarding the financing costs related to the completed projects. |
| Reclassifications in quarterly financial results | Certain comparative figures have been reclassified to conform to the presentation in the current period. |
| Other notes | 1) Revenues amounted to SAR (114.9) million in current quarter compared with SAR (130.0) million in the same quarter of previous year representing a decline by (11.6%), and compared with SAR (115.1) million in the previous quarter representing a decline by (0.1%). Revenues amounted to SAR (230.1) million in current period compared with SAR (248.5) million in the same period of previous year representing a decline by (7.4%). 2) Comprehensive Income amounted to SAR (13.3) million in current quarter compared with SAR (31.3) million in the same quarter of previous year representing a decrease by (57.4%), and compared with SAR (18.1) million in the previous quarter representing a decrease by (26.4%). Comprehensive Income amounted to SAR (32.2) million in current period compared with SAR (55.9) million in the same period of previous year representing a decrease by (42.4%). 3) Shareholders Equity (excluding minority interest) amounted to SAR (1,781) million by the end of the current period compared with SAR (1,789) million by the end of the same period of previous year, representing a decline by (0.5%). 4) The External Auditor reviewed the financial statements and issued an unmodified opinion report. |
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