Al-Hokair Group’s 2014 net profit up to SAR 196.5 mln

Al-Hokair Tourism and Development Group, a newly listed company in the Saudi stock exchange market, reported a 2014’s net profit of SAR 196.5 million, compared to SAR 195.7 million for the last year.

A net profit of SAR 50.2 million was reported for Q4-2014 compared to SAR 42.6 million for Q3.

The company attributed the increase of 2014’s net profit compared to the same period last year to the increase of revenue from both Hotels and Entertainment Divisions driven by the growth in revenue of existing hotels and Entertainment sites, the inclusion of revenue from two new hotels for the full period while their impact was only partially captured during the same period last year due to the timing of their openings, and the full operation of three Entertainment sites during the period and the addition of two new Entertainment sites.

The decline of Q4-2014’s net profit compared to the same period last year was attributed to the increase of selling & marketing expenses and financing expenses driven by the increase of loans to finance expansion plans in addition to the decrease of other revenue. The increase of Gross profit is due to the increase of operational revenue of both the Hotels and Entertainment Divisions .

Q4’s net profit decline compared to the previous period (Q3-2014) was attributed to the decrease of general & administrative expenses and the decrease of financing expenses. Additionally, gross profit decreased due to the decrease of revenue from both Hotels and Entertainment divisions.