Riyadh – Mubasher: AlTayyar Travel Group Holding reported a 28.62% year-on-year decline in its profits for the second quarter of 2017.
Profits amounted to SAR 212 million ($56.54 million) in Q2-17, down from SAR 297 million ($79.21 million) in the year-ago period, according to a bourse filing.
Between January and June, the Saudi-listed firm’s profits fell 28.5% to SAR 349 million versus SAR 488 million in H1-16.
AlTayyar’s revenues, as classified by the International Financial Reporting Standards (IFRS), fell 8% year-on-year in Q2-17 on the back of a “decline in the average commission or revenue of the traditional travel sector”.
Meanwhile, online bookings through AlTayyar’s website surged 123% to SAR 389 million in Q2-17 from SAR 174 million in the year-ago period, and 146% to SAR 589 million in H1-17 from SAR 240 million in H1-16.
“This sector enjoyed rapid growth from the group’s strategy to focus on the online sector,” AlTayyar said.
As for the decline in net profits, the travel firm attributed the drop to an 8% decrease in revenue in Q2-17 on the back of lower margins for some services, as the company sought to “protect and increase the market share”.
“[A] change in product mix with variable margins primarily due to online sales and travel services in [the UK] due to addition of Portman Group acquired during end of 2016,” AlTayyar added as another reason for the revenue decline.
Earnings per share (EPS) amounted to SAR 1.66 in H1-17 compared to SAR 2.33 in H1-16.
By 2:12 pm Saudi time, AlTayyar’s stock grew 0.42% to SAR 33.25.
