Riyadh – Mubasher: Aljazira Capital on Thursday said that its outlook on Abdul Mohsen Al Hokair Group for Tourism and Development Company’s investments in cinema sector is positive during the next period.

The remarkable increase in reply for the cinemas is promising, the research firm added.

Nevertheless, the rising number of cinema screens in the kingdom that may raise market saturation poses the biggest danger for the sector, Aljazira Capital noted.

“Although it is difficult to predict the occupancy rate, as it is highly reliant on the flow of blockbuster movies and their performance. For simplicity, we are assuming the occupancy in line with global average utilization rate of around 70%,” the research company noted.

In April, Al Hokair Group inked a deal with Mexican movie theatre chain Cinepolis and the UAE-based Al Tayer group to operate and build cinemas in the kingdom.

The firm last reported a 79.05% year-on-year profit decrease, reaching SAR 3.1 million during the second quarter of 2018, compared to SAR 14.8 million.

Al Hokair Group’s stock levelled up 1.27% to finish Thursday’s trading session at SAR 19.16.