Mubasher TV
Contact Us Advertising   العربية

Abdulmohsen Alhokair Group for Tourism and Development announces its Interim Financial Results for the Period Ending on 2020-09-30 ( Nine Months )

Default Company 1820.B 0.00% 0.00 0.00
Element List Current Quarter Similar quarter for previous year %Change Previous Quarter % Change
Sales/Revenue 113.23 301.85 -62.487 119.58 -5.31
Gross Profit (Loss) -41.57 82.85 - -1.52 2,634.868
Operational Profit (Loss) -90.29 13.46 - -47.24 91.13
Net Profit (Loss) after Zakat and Tax -109.32 -15.52 604.381 2.07 -
Total Comprehensive Income -109.3 -15.39 610.201 2.13 -
All figures are in (Millions) Saudi Arabia, Riyals
Element List Current Period Similar period for previous year %Change
Sales/Revenue 463.86 861.51 -46.157
Gross Profit (Loss) 38.21 226.86 -83.157
Operational Profit (Loss) -108.99 28.32 -
Net Profit (Loss) after Zakat and Tax -105.15 -46.96 123.913
Total Comprehensive Income -105.21 -46.86 124.519
Total Share Holders Equity (after Deducting Minority Equity) 334.6 535.48 -37.514
Profit (Loss) per Share -1.91 -0.85
All figures are in (Millions) Saudi Arabia, Riyals
Accumulated Losses Capital Percentage %
207.33 550 37.7
All figures are in (Millions) Saudi Arabia, Riyals
Element List Explanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to The reasons for the increase in Net loss in current quarter as compared with the same quarter of the last year are as follows:

1- Decrease in revenues by SAR 188.6 million mainly resulted from:

* The company’s revenues in general were negatively affected by the repercussions of corona virus pandemic, as international flights are suspended during current quarter and not yet fully resumed till to date, also from the precautionary and preventive measures taken by the government to control the emerging corona virus and to prevent it’s spread, Which negatively affects the number of the company’s customers.

* Hotel sector negatively affected from the decline in demand from individuals and corporate sector, includes the demand for rooms, banquet halls, meeting rooms and outside catering.

* Closure of a number of low performing locations during the last year included Hotels, Entertainment and Commercial centers which incurred operational losses, resulting in a decreased revenues during the current quarter by SAR 24.8 million.

2- This was offset by the reduction of the total expenses amounted to SAR 98.3 million during the current quarter, compared to the same quarter of the last year, as follows:

* Direct cost decreased by SAR 64.2 million due to:

A- Reduction on depreciation of right of use assets expenses by SAR 24.1 million, mainly due to the modification of the lease agreements in pervious quarter of all the hotel properties which leased from the principal shareholder, to be a percentage of revenues instead of fixed rent amount, this modification led these hotel properties to be excluded from the calculation under International financial reporting standard no.16 and thus led to a decrease in the deprecation of right of use assets expenses.

B- Reduction on salaries and related benefits expenses by SAR 22.5 million, utilities expenses by SAR 7.4 million and other miscellaneous expenses by SAR 24.6 million.

C- Provision for Impairment of property and equipment was recorded by SAR 14.4 million.

* Decrease in selling and marketing expenses by SAR 10.8 million, due to the decrease of the advertisement and promotion expenses, marketing commission and the salaries and related benefits expenses.

* Decrease in general and administration expenses by SAR 9.8 million mainly from salaries and related benefits expenses.

* Decrease in financial charges on lease liabilities by SAR 13.5 million.

3- The Company’s share in net results of joint ventures decreased by SAR 5.0 million.

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to The reasons for achieving a Net loss in current quarter, compared with a Net profit in previous quarter are as follows:

1- Revenues decreased by SAR 6.3 million, mainly due to hotel revenues which negatively affected during current quarter, as a result of the end of contract between the Ministry of Health and some of the company's hotels that were used as a health quarantines.

2- Increase in Direct cost by SAR 33.7 million, mainly resulted from recording of provision for Impairment of property and equipment by SAR 14.4 million, in addition that last quarter there were a rental exemption for some leased Hotels, Entertainment and Commercial centers.

3- Increase in selling and marketing expenses by SAR 2.3 million, due to the increase of the advertisement and promotion expenses and marketing commission.

4- Recognition of nonrecurring gain during the pervious quarter by SAR 76.9 million according to the requirements of the International financial reporting standard no.16, resulted from revised of lease agreement of all the hotel properties which leased from the principle shareholder, to be a percentage of revenues instead of fixed rent amount, which led to derecognition of rights of use assets by SAR 682.1 million and lease liabilities by SAR 759.0 million.

Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to The reasons for the increase in Net loss in current period, compared with the same period of last year are as follows:

1- Decrease in revenues by SAR 397.6 million mainly resulted from:

* The company’s revenues in general were negatively affected during the current period due to the pandemic of emerging corona virus, as all of the Entertainment sites were closed from 15th of March 2020 until 20th of June 2020, due to the precautionary and preventive measures taken by the government to control the emerging corona virus and to prevent it’s spread.

* Hotel sector negatively affected from the decline in demand from individuals and corporate sector, includes the demand for rooms, banquet halls, meeting rooms and outside catering.

* Closure of a number of low performing locations during the last year included Hotels, Entertainment and Commercial centers which incurred operational losses, resulting in a decreased revenues during the current period by SAR 63.7 million.

2- This was offset by the reduction of the total expenses amounted to SAR 282.4 million during the current period, compared to the same period of the last year, also an increase in other income, as follows:

* Direct cost decreased by SAR 209.0 million due to:

A- Getting a rental exemption by SAR 47.2 million during the current period for some leased Hotels, Entertainment and Commercial centers, Coinciding with corona virus.

B- Reduction on depreciation of right of use assets expenses by SAR 51.4 million, mainly due to the modification of the lease agreements of all the hotel properties which leased from the principal shareholder, to be a percentage of revenues instead of fixed rent amount, this modification led these hotel properties to be excluded from the calculation under International financial reporting standard no.16 and thus led to a decrease in the deprecation of right of use assets expenses.

C- Reduction on salaries and related benefits expenses by SAR 54.5 million, utilities expenses by SAR 22.1 million, maintenance expenses by SAR 5.2 million and other miscellaneous expenses by SAR 43.0 million.

D- Provision for Impairment of property and equipment was recorded by SAR 14.4 million.

* Decrease in selling and marketing expenses by SAR 27.2 million, due to the decrease of the advertisement and promotion expenses, marketing commission and the salaries and related benefits expenses.

* Decrease in general and administration expenses by SAR 24.1 million mainly from salaries and related benefits expenses.

* Decrease in financial charges on lease liabilities by SAR 21.6 million, and financial charges on loans by SAR 0.5 million.

* Other income increased by SAR 72.5 million, mainly resulted from the recognition of nonrecurring gain during the current period by SAR 76.9 million according to the requirements of the International financial reporting standard no.16, resulted from revised of lease agreement of all the hotel properties which leased from the principle shareholder, to be a percentage of revenues instead of fixed rent amount, which led to derecognition of rights of use assets by SAR 682.1 million and lease liabilities by SAR 759.0 million.

3- The Company’s share in net results of joint ventures decreased by SAR 16.7 million, mainly due to the closure of the sites of these joint venture resulting from the precautionary and preventive measures taken by the government to control the emerging corona virus and to prevent it’s spread.

4- During current period, zakat provision was reversed by SAR 1.2 million, the company received the final assessment for the year of 2012 which led to a reduction on the calculation of the zakat provision.

Basis of the External Auditor's Opinion Unmodified opinion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion NA
Reclassification of Comparison Items NA
Additional Information Total revenues during current quarter amounted to SAR 113.23 million, compared to SAR 301.85 million for the same quarter of last year with a decrease of 62.5%.

Gross Loss during current quarter amounted to SAR 41.57 million, compared to Gross Profit amounted to SAR 82.85 million for the same quarter of last year.

Operational Loss during current quarter amounted to SAR 90.29 million, compared to Operational Profit amounted to SAR 13.46 million for the same quarter of last year.

Net loss during current quarter amounted to SAR 109.32 million, compared to SAR 15.52 million for the same quarter of last year with an increase of 604.4% and compared to Net profit amounted to SAR 2.07 million for the previous quarter.

Total comprehensive loss during current quarter amounted to SAR 109.3 million, compared to SAR 15.39 million for the same quarter of last year with an increase of 610.2% and compared to total comprehensive income amounted to SAR 2.13 million for the previous quarter.

Total revenues during current period amounted to SAR 463.86 million, compared to SAR 861.51 million for the same period of last year with a decrease of 46.2%.

Gross Profit during current period amounted to SAR 38.21 million, compared to SAR 226.86 million for the same period of last year with a decrease of 83.16%.

Operational Loss during current period amounted to SAR 108.99 million, compared to Operational Profit amounted to SAR 28.32 million for the same period of last year.

Net loss during the current period amounted to SAR 105.15 million, compared to SAR 46.96 million for the same period of last year with an increase of 123.91%.

Total comprehensive loss during current period amounted to SAR 105.21 million, compared to SAR 46.86 million for the same period of last year with an increase of 124.52%.

Loss per share for the current period amounted to SAR 1.91 , compared to SAR 0.85 for the same period of last year.

Total Shareholders Equity ( No Minority interests ) during the current period amounted to SAR 334.6 million, compared to SAR 535.48 million of the same period of last year with a decrease of 37.51%.

* The accumulated losses as of 30-09-2020 amounted to SAR 207.3 million which represent 37.7% of the Company’s share capital.

* The main reasons that led to these losses, are due to the following:

1- The company’s businesses were affected by Covid-19 pandemic (Coronavirus) and by the precautionary and preventive measures to control the emerging corona virus and to prevent it’s spread. It should be noted that all Entertainment centers were closed from March 15, 2020 to June 20, 2020, as previously announced. The company has been gradually opening entertainment centers starting from June 21, 2020 based on market demand.

2- Suspension of international flights till to date has negatively affected hotel occupancy rate in all region especially Western Region.

3- Non-recurring losses resulted from the closure of a number of low performing locations during 2018 and 2019.

4- Increase of operating expenses, due to the increase in renewal of expats work permits cost, licenses renewal cost and the utilities cost.

* The actions that will be taken by the company to reduce the accumulated losses:

1- Continuing to restructure the company’s sectors, by exiting from low performing locations, including hotel and entertainment sites which occurring operational losses.

2- Diversifying the sources of income and the expansion of the company's share in the entertainment sector through develop new entertainment methods.

3- Applying initiatives to reduce operating and administrative expenses.

4- Maintaining strong cash position and great banking relationships.

5- Absorption of the accumulated losses by reducing the share capital and then increase the share capital through offering right’s issue.

* Procedures and Instructions Applicable on Companies Listed in Saudi Capital Market Whose Accumulated Losses Reach 20% or more out of the Capital Thereof will be Applied.

Comments