27-07-2016 22-10-1437
Corrective announcement from Al Tayyar Travel Group regarding the preliminary financial results for the period ended 30/06/2016 (six months) which was announced on Tadawul website on 27 July 2016 about Reasons of increase (decrease) for quarter compared with same quarter last year where it was stated that
The Company revenues decreased during the current quarter as compared with the same quarter of last year by 9% mainly due to a decrease in sales of the traditional travel industry and domestic tourism especially travel to the government sector and government sector related companies as well as lower ticket prices during the first quarter of this year and the ticket tax, It should be noted here that the Group online sales have increased by 1000% compared with last year for the same quarter (of SR 6 million to SR 66 million) this sector enjoyed rapid growth from the Group’s strategy to focus on electronic sales sector The net profit for the current quarter has decreased by 33% as compared to last year due to decrease in sales by 9% and slight drop in gross profit margin in addition to impairment loss recorded on investment in associates and impairment loss recorded on intangible assets. Excluding the impact of impairment losses recorded on equity accounted investment SR 6 million and impairment loss recorded for intangible assets SR 24 million the net profit of the Company has decreased by 22% as compared to same quarter last year.
And the correct announcement is
The Company revenues decreased during the current quarter as compared with the same quarter of last year by 7% mainly due to decrease in sales of the traditional travel sector and domestic tourism, especially in the government sector and government sector related companies as well as decrease in average ticket price. It should be noted here that the Group online sales through its electronic platform have increased by 11500% compared with last year for the same quarter (from SR 1.5 million to SR 174 million) this sector enjoyed rapid growth from the Group strategy to focus on online sector.
The net profit for the current quarter has decreased by 24% as compared to last year due to decrease in sales by 7% and slight drop in gross profit margin due to decrease in prices for some services in order to protect and increase the market share in addition to impairment loss of SR 44.5 million recorded on intangible assets.
Excluding the impact of impairment losses recorded on intangible assets SR 44.5 million during the current quarter and impairment loss of SR 20 million recorded on equity investments in same quarter last year, the net profit of the Company has decreased by 17% as compared to same quarter last year.
