• 16 Feb 2017

16-02-2017     19-05-1438

 

ELEMENT

CURRENT YEAR

PREVIOUS YEAR

% CHANGE

Net profit (loss)

826

1,162

-28.92

Earning or loss per share, Riyals

3.99

5.81

Gross profit (loss)

 1,489

1,800

-17.28

Operational profit (loss)

876

1,203

-27.18

All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT

EXPLAINATION

Reasons of annual financial results

The Company revenues decreased by 7% during the current year as compared with previous year mainly due to decrease in sales of the traditional travel sector and domestic tourism as well as lower average ticket prices during the current year as compared to previous year due to massive discounts given by the airlines. It should be noted here that the Group online bookings through its online platform have increased by 1192% compared with previous year (from SR 44 million to SR 567 million). This sector enjoyed rapid growth from the Group’s strategy to focus on online sector.The net profit for the current year has decreased by 29% as compared to previous year due to decrease in sales by 7% 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 6.4 million (2015: SR 30 million) and impairment loss recorded for intangible assets SR 77 million (2015: 37) and gain on acquisition of subsidiary SR 10 million (2015:NIL) the net profit of the Company has decreased by 27% as compared to previous year.

Re classifications in annual financial results

Certain comparative figures are reclassified to conform current year classification.

Other notes

Earnings (loss) per share from operating income, other income and net income for the current year has been calculated by using the weighted average number of ordinary shares outstanding as at 31 December 2016 of 207.17 million shares (2015: 200 million shares). The Company increased its capital on 10 March 2016 by issuing 9.6 million new ordinary shares of SR 10 each. The revenue for the current year is SAR 8,041 million as compared to SAR 8,631 million in previous year with a decrease of 7%. The gross profit for the current year is SAR 1,489 million as compared to SAR 1,800 million in previous year with a decrease of 17%. The operating profit for the current year is SAR 876 million as compared to SAR 1,203 million in previous year with a decrease of 27%. The net profit after zakat and tax and minority interest for the current year is SAR 826 million as compared to SAR 1,162 million in previous year with a decrease of 29%. Earnings per share for the current year is SR 3.99 per share as compared to SR 5.81 per share in the previous year. Total equity (without minority interest) as of end of current year is SAR 5,510 million as compared to SAR 3,971 million in previous year (without minority interest) showing an increase of 39%.

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