This decrease is mainly due to a decline in hotel sector revenue resulting from lower occupancy rates and a decrease in the average room rate, particularly in the Riyadh region.

There was also a decline in revenue from the entertainment sector due to lower visitor numbers and reduced average spending.

Meanwhile, revenue from other activities increased as a result of catering and food service operations.

This decline is mainly due to lower revenues during the current quarter in the entertainment and hotel sectors, in addition to pre-operating costs related to the catering project awarded to the company in 2025. The same quarter of the previous year also included non-operating income from insurance compensation amounting to SAR 5.7 million.

However, the impact of the revenue decline was partially offset by lower financing costs, reduced operating costs in the hotel and entertainment sectors, and net gains from the disposal of property and equipment amounting to SAR 8.4 million.

This increase is mainly due to higher revenue from the entertainment sector, driven by the occurrence of both Eid Al-Fitr and Eid Al-Adha during the current quarter, as well as an increase in revenue from other activities, particularly due to higher income from catering services compared to the previous quarter.

Additionally, there was a decrease in revenue from the hotel and entertainment sectors during the current period compared to the previous year, along with preparation and pre-operating costs related to the catering project awarded in the first quarter of the current year.

financial statements.

Operating profit amounted to SAR 14.27 million, compared to SAR 27.46 million for the same quarter of the previous year, representing a decrease of 48.03%.

Total comprehensive loss for the period amounted to SAR 14.22 million, compared to total comprehensive income of SAR 11.22 million for the same period of the previous year.

Accumulated Losses:

Accumulated losses amounted to SAR 125.60 million as of the end of the current period, representing 39.87% of the Group’s subscribed capital of SAR 315 million

The main reason for the increase in accumulated losses is the decline in performance of the hotel and entertainment sectors, due to reduced revenues from these two sectors during the current period.

The Group is working on several measures to reduce the accumulated losses, as follows:

- Continuing the implementation of the Group’s strategic transformation program and plan.

- Ongoing restructuring of the Group’s business sectors to enhance operational and administrative efficiency.

- Continuous evaluation of the Group’s projects, with a focus on exiting underperforming projects that are generating operating losses.

- Focusing on promising sectors such as the catering sector to improve the Group’s financial performance.

- Working on finalizing the procedures for the two agreements signed on December 29, 2024.

The Group announced the signing of two binding agreements to acquire real estate assets through a capital increase and the issuance of new shares as consideration to the sellers. Completion of these transactions is subject to the approval of regulatory authorities, relevant bodies, and the General Assembly.

The procedures and instructions will be applied to companies whose shares are listed on the Saudi Stock Exchange and whose accumulated losses amount to 20% or more of their capital