Riyadh – Mubasher: Abdulmohsen Alhokair Group for Tourism and Development (Al Hokair) posted a 326.3% year-on-year increase in its losses for the first quarter of 2019.

Net losses after zakat and tax amounted to SAR 32.06 million in Q1-19, against SAR 7.25 million in Q1-18, according to the company’s statement to the Saudi Stock Exchange (Tadawul) on Tuesday.

Total Comprehensive Income fell 74.8% year-on-year to SAR 32.08 million during the first three months of 2019.

The increase in losses was attributed to a drop in the company’s total revenues by SAR 10.2 million in Q1-19 due to the decline in demand for existing hotels from individuals and corporate sector on conferences, meetings, and exhibitions. 

“The seasonality in Company's operation which negatively affected the results of hotels and entertainment centres as the Schools Midterm holidays occurred partially during January 2019, while in January 2018 the Schools Midterm holidays occurred during the whole month,” the statement highlighted.

Moreover, the company implemented IFRS 16 in January, which led to higher financial charges by SAR 22.6 million and increased depreciation of right to use assets by SAR 50.4 million.

Total revenues of the group decreased by 3.8% to SAR 260.73 million in Q1-19, from SAR 271 million in the same period of the prior year.

Similarly, operational loss slid 55% year-on-year to SAR 3.31 million during the three-month period ended 31 March.

Loss per share (LPS) amounted to SAR -0.58 in Q1-19, compared to SAR -0.14 for the same period of last year.