By: Thabet Shehata
Riyadh – Mubasher: Profits of hotel and tourism companies listed on the Saudi Stock Exchange (Tadawul) declined in the second quarter of the fiscal year 2016 by 26.9% to SAR 348.87 million ($93 million), compared to SAR 477.35 million ($127.29 million) in Q2-15.
Total net profit of hotel and tourism firms fell in the first half of fiscal 2016 by 27.8% to SAR 625.2 million from SAR 865.56 million for the same period of 2015.
Tadawul’s hotel and tourism sector includes four companies; Al Tayyar Travel Group Holding, Al Hokair Group for Tourism and Development Company, Dur Hospitality Company and Tourism Enterprises (Shams).
Total operating profit retreated in Q2-16 by 25.26% to SAR 355.9 million from SAR 476.2 million for Q2-15 and fell by 26.7% in H1-16 to SAR 641.8 million from SAR 876 million.
Al Tayyar Group owned the lion’s share stake of 85% in the sector’s profit for Q2-16 and H1-16 as the company posted a net profit of SAR 300 million for Q2-16, a fall of 24% compared to Q2-15.
Dur Hospitality came second in the list with a stake of 8.36% of the sector’s total profit for Q2-16 with a net profit of SAR 29.16 million, falling 20.37% quarter-on-quarter.
Shams posted the lowest profit of SAR 902,000 for Q2-16, 44.6% down from SAR 1.63 million for Q2-15
Al Hokair Group’s profits for Q2-16 also shrank by 56.38% q-o-q.
Translated by: Elwy el-Manzalawy
