| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 138 | 535 | -74.205 | 397 | -65.239 |
| Gross Profit (Loss) | 26 | 341 | -92.375 | 185 | -85.945 |
| Operational Profit (Loss) | -159 | 87 | – | -103 | 54.368 |
| Net Profit (Loss) after Zakat and Tax | -172 | 66 | – | 1,112 | – |
| Total Comprehensive Income | -171 | 62 | – | 1,098 | – |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 535 | 1,044 | -48.754 |
| Gross Profit (Loss) | 212 | 643 | -67.029 |
| Operational Profit (Loss) | -263 | 152 | – |
| Net Profit (Loss) after Zakat and Tax | 940 | 115 | 717.391 |
| Total Comprehensive Income | 927 | 117 | 692.307 |
| Total Share Holders Equity (after Deducting Minority Equity) | 6,788 | 5,772 | 17.602 |
| Profit (Loss) per Share | 3.14 | 0.37 | |
| 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 | Group gross booking value (GBV) decreased by 86% for the 2nd quarter 2020 to SAR 398 million vs. SAR 2.8 Billion Q2 2019. The drop is solely driven by precautionary measures taken as a result of COVID-19 outbreak that has directly impacted travel and tourism sector.
Consumer Travel recorded SAR 38 million in GBV for Q2 2020 v’s SAR 914 million Q2 2019, a decrease of 96%. Travel management witnessed a drop of 82% in GBV for Q2 2020 v’s Q 2 2019 posting SAR 161 million of GBV in Q2 2020. Car Rental posted a 65% increase in revenue in Q2 2020, to SAR 99m driven by new lease contracts secured with government and corporate clients. Hospitality yielded revenue of SAR 15m representing a 67% drop from the previous period. Hajj& Umrah has not generated any during Q2 2020 vs SR 48 million in Q2 2019. The drop is solely driven by the measures taken by the government due to COVID-19 outbreak. Group Revenue declined by 74% in Q2 2020 v’s Q2 2019 driven by drop in GBV due to COVID – 19. Net loss The company generated a net loss after zakat of SR 172 million as compared to net profit of SR 66 million during the previous. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | Group gross booking value (GBV) decreased by 79% for the 2nd quarter 2020 to SAR 398 million vs. SAR 1.9 Billion Q1 2020. The drop is solely driven by precautionary measures taken as a result of COVID-19 outbreak that has directly impacted travel and tourism sector.
Consumer Travel recorded SAR 38 million in GBV for Q2 2020 v’s SAR 663 million Q1 2020, a decrease of 94%. Travel management witnessed a drop of 68% in GBV for Q2 2020 v’s Q 1 2020 posting SAR 161 million of GBV in Q2 2020. Car Rental posted a drop of 17% in revenue in Q2 2020, to SAR 99m due to drop in revenue from retail sector, after temporary closure of retail branches as a result of COVID – 19. Hospitality yielded revenue of SAR 15m representing a 43% drop from the previous quarter. Hajj& Umrah has not generated any revenue during Q2 2020 vs SR 23 million in Q1 2020. The drop is solely driven by the measures taken by the government due to COVID-19 outbreak. Group Revenue declined by 65% in Q2 2020 v’s Q1 2020 driven by drop in GBV due to COVID – 19. Net loss The company generated a net loss after zakat of SR 172 million as compared to net profit of SR 1.112 billion during the previous year primarily driven by profit recognized on Careem transaction amounting SR 1.563 billion. Excluding the impact of below exceptional items, the company achieved normalized net loss of SR 172 million for the Q2 2020 (Q1 2020: net loss of SR 123 million) with an increase of 40% in losses as compared to Q1 2020. – Portion of gain recorded in current quarter on disposal of investment is SR NIL (Q1 2020: 1.563 billion) – Impairment losses amounting to SR NIL (Q1 2020: SR 315 million) Recognized foreign currency loss on impairment of goodwill amounting to SR NIL (Q1 2020: SR 13 million) |
| Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to | Group gross booking value (GBV) decreased by 55% for the current period 2020 to SAR 2.3 billion vs. SAR 5.1 Billion YTD 2019. The drop is solely driven by precautionary measures taken as a result of COVID-19 outbreak that has directly impacted travel and tourism sector.
Consumer Travel recorded SAR 701 million in GBV for 2020 v’s SAR 1.5 billion YTD 2019, a decrease of 54%. Travel management witnessed a drop of 58% in GBV for the period v’s 2019 posting SAR 656 million of GBV during the current period. Car Rental posted an increase of 101% in revenue YTD 2020, to SAR 220 million driven by new lease contracts secured with government and corporate clients. Hospitality yielded revenue of SAR 41 million representing a 44% drop from the previous year due to the temporary closure of commercial operation Hotels and Hajj&Umrah visa as a result of COVID – 19. Hajj& Umrah posted SR 23 million revenue during 2020 vs SR 87 million in 2019. The drop due to the temporary closure of Hajj&Umrah visa and Umrah for citizens and residents is solely driven by the measures taken by the government due to COVID-19 Group Revenue declined by 49% in 2020 v’s 2019 driven by drop in GBV due to COVID – 19. Net profit The company generated a net profit after zakat of SR 940 million as compared to net profit of SR 115 million during the previous year, primarily driven by profit recognized on Careem transaction amounting to SR 1.563 billion. Excluding the impact of below exceptional items, the company achieved normalized net loss of SR 295 million for the period 2020 (2019: net profit of SR 110 million) with a decrease of 368% in losses as compared to 2019. – Portion of gain recorded in current quarter on disposal of investment is SR 1.563 billion (2019: NIL) – Impairment losses amounting to SR 315 million (2019: SR NIL) – Recognized foreign currency loss on impairment of goodwill amounting to SR 13 million (2019: SR NIL) – Gain on disposal of subsidiary during the current period SR NIL (2019: SR 16 million) – Foreign currency loss recognized on disposal of subsidiary during the current period SR NIL (2019: SR 11 million) |
| Basis of the External Auditor’s Opinion | Unmodified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | Non |
| Reclassification of Comparison Items | Certain comparative figures are reclassified to conform to current period classification. |
| Additional Information | Other information:
1 The revenue for the current quarter is SAR 138 million as compared to SAR 535 million during the same quarter of the previous year showing a decrease of 74%. The revenue for the current period is SAR 535 million as compared to SAR 1,044 million for the same period of the previous year showing a decrease of 49%. 2 The gross profit for the current quarter is SAR 26 million as compared to SAR 341 million during the same quarter of the previous year with a decrease of 92%. The gross profit for the current period is SAR 212 million as compared to SAR 643 million for the same period of the previous year showing a decrease of 67%. 3 The operating loss for the current quarter is SAR 159 million as compared to operating profit of SAR 87 million during the same quarter for the previous year with a decline of 283%. The operating loss for the current period is SAR 263 million as compared to operating profit of SAR 152 million for the same period of the previous year showing a increase of 273 %. 4 The net loss after zakat and tax for the current quarter is SAR 172 million as compared to profit of SAR 66 million during the same quarter of the previous year showing a decrease of 359%. The net loss after non controlling interest for the current quarter is SAR 170 million as compared to net profit of SAR 65 million for the same quarter of the previous year with a decrease of 361%. The net profit after zakat and tax for the current period is SAR 940 million as compared to a net profit of SAR 115 million for the same period of the previous year with an increase of 717%. The net profit after non controlling interest for the current period is SAR 943 million as compared to net profit of SAR 112 million for the same period of previous year with an increase of 742%. 5 The total comprehensive loss for the current quarter before non controlling interest is SAR 171 million as compared to total comprehensive income of SAR 62 million for the same quarter of previous year decreased by 375%. The total comprehensive loss after non controlling interest for the current quarter is SAR 170 million as compared to total comprehensive income of SAR 61 million for the same quarter of the previous year showing a decrease of 378%. The total comprehensive income for the current period before non controlling interest is SAR 927 million as compared to total comprehensive income of SAR 117 million for the same period of previous year with an increase of 692%. The total comprehensive income after the non controlling interest for the current period is SAR 930 million as compared to total comprehensive loss of SAR 115 million for the same period of previous year with an increase of 709%. The total comprehensive loss for the current quarter SAR 171 million as compared to income of SAR 1,098 million for the previous quarter with a decrease of 116%. The total comprehensive loss for the current quarter after non controlling interests is SAR 170 million as compared to income of SAR 1,099 million for the previous quarter with a decrease of 115%. 6 Loss per share for the current quarter is SR 0.57 as compared to earnings per share of SR 0.22 for the same quarter of previous year. Earnings per share for the current period is SR 3.14 per share as compared to SR 0.37 per share in the same period of previous year. 7 The shareholders equity (without non controlling interest) as at the end of the current period is SAR 6,788 million as compared to SAR 5,772 million in the previous year (without minority interest) increased by 18%. COVID-19 assessment Due to a novel strain of coronavirus (COVID-19) that was first identified at the end of December 2019 and subsequently declared as a pandemic in March 2020 by the World Health Organization (WHO) which continues to spread all regions around the world, including the Kingdom of Saudi Arabia and resulted in travel restrictions and curfew in the cities and hence a slowdown of economic activities and shutdown of many sectors at global and local levels and has impacted significantly travel and tourism sector. As a result of the impact assessment carried out by the management, Covid-19 outbreak has significantly impacted the Group’s operations, hence the Group has impaired the following assets: • Goodwill and related assets (for cash generating units) • Software, • Customer lists, • Brand names, and • Investment in equity-accounted investees Impairments recorded have been disclosed in note number 5,6, 7 and 8 of financial statement. The Group will continue to evaluate the nature and extent of the impact on its business and financial results. Disposal of Careem The acquisition of Careem Inc. net asset by Uber Technologies was completed on 2 January 2020 ("Minimum Payment Date" as per APA) after obtaining the approval from most of the regulatory authorities in the relevant countries. As per APA, Uber held back 25% of the total consideration amounting to SR 483 million, until all regulatory and legal requirements have been completed. The Group recognized a net gain of SR 1,563 million, excluding an amount of SR 241 million, which represents 50% of the holdback amount as described above. The Group assessed the recoverability of the remaining receivable amount related to holdbacks based on the information it obtained related to the progress of regulatory, tax and indemnity issues for the closure of sale transaction. The Group will be recording additional income (upto SR 241 million) in future periods, after completion of entire regulatory processes, subject to regulatory and indemnity holdbacks deductions (if any). Please refer to note number 4 of the financial statement for significant matter during the period. |
