• 19 Jan 2017

19-01-2017     21-04-1438

ELEMENT

CURRENT QUARTER

SIMILAR QUARTER FOR PREVIOUS YEAR

% CHANGE CURRENT

PREVIOUS QUARTER

% CHANGE PREVIOUS

Net profit (loss)

145

215

-32.56

188

-22.87

Gross profit (loss)

314 417

-24.7

325

-3.38

Operational profit (loss)

146

227

-35.68 213

-31.46

 

ELEMENT

CURRENT PERIOD

SIMILAR PERIOD FOR PREVIOUS YEAR

% CHANGE

Net profit (loss)

 

826

1,162

-28.92

Gross profit (loss)

 

 1,489

1,800

-17.28

Operational profit (loss)

 

 876

 1,203

-27.18

EARNING OR LOSS PER SHARE, RIYALS

3.99

5.81

 –

 

All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT

 

EXPLAINATION

Reasons of increase (decrease) for quarter compared with same quarter last year

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 as well as decrease in average ticket price due to massive discounts given by the airlines. It should be noted here that the Groups online bookings through its online platform have increased by 520% compared with last year for the same quarter (from SR 23 million to SR 145 million) this sector enjoyed rapid growth from the Groups strategy to focus on online sector The net profit for the current quarter has decreased by 33% as compared to last year due to decrease in sales by 7% and drop in gross profit margin due to decrease in margins for some services in order to protect and increase the market share and due to change in product mix with variable margins. Excluding the impact of gain on acquisition of subsidiaries recorded during the quarter SR 10 million (2015: NIL) the net profit of the company has decreased by 37% as compared to same quarter last year.

Reasons of increase (decrease) for period compared with same period last year

The Company revenues decreased during the current period as compared with the same period of last year by 7% mainly due to decrease in sales of the traditional travel sector and domestic tourism as well as lower average ticket prices during the current period as compared to last 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 last year for the same period (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 period has decreased by 29% as compared to last 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: SR 37 million) and gain on acquisition of subsidiaries SR 10 million (2015:NIL) the net profit of the Company has decreased by 27% as compared to same period last year.

Reasons of increase (decrease) for quarter compared with previous quarter

Revenue of the company during the current quarter as compared to previous quarter has increased by 12% mainly due to seasonality reasons. The net profit for the current quarter has decreased by 23% as compared to previous quarter due to decrease in sales by 12% and increase in selling and marketing expense by 44% and general and administrative expense by 38%. Excluding the impact of gain on acquisition of subsidiaries recorded during the quarter SR 10 million (2015: NIL) the net profit of the company has decreased by 28% as compared to previous quarter.

Re classifications in quarterly financial results

Certain comparative figures are reclassified to conform current period classification.

Other notes

 The revenue during the current quarter amounted to SAR 2,036 Million compared to SAR 2,185 million for the same quarter of last year, showing a decrease of 7 %. The revenue during the current period amounted to SAR 8,041 million compared to SAR 8,631 million with a decrease of 7%. The shareholders equity (without minority interest) as of end of current period is SAR 5,510 million showing an increase by 39% compared to SAR 3,971 million as of end of similar period last year (without minority interest) Earnings / (loss) per share from operating income, other income / (expense) and net income for the current period 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 MAR 2016 by issuing 9.6 million new ordinary shares of SR 10 each.

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