Budget Saudi Q2 profit lifted by pre-owned car sales: CEO

United International Transportation Co. Ltd. (Budget Saudi) posted solid results for Q2 2019, driven by focusing on pre-owned cars sales, Fawaz Danish, President & CEO, told CNBC Arabia on Sunday.

He said that these sales accounted for over 70 percent of the company’s gross profit, adding that the number of buyers doubled due to the introduction of e-payments and strong marketing campaigns.

In addition, improved short term car rentals were bolstered by the increase of domestic flights, as well as tourism and entertainment seasons.

Budget Saudi’s market share in the short and long term car rentals is estimated at nearly 25 percent, Danish stated.

“The company is expected to garner a market share of 20 percent in short rentals only, ahead of further growth going forward as small firms might merge or exit the market,” he added.

The car rental company reported a net profit after zakat and tax of SAR 85.1 million for the first half of 2019, a rise of 6 percent year-on-year (YoY).

Read: Budget Saudi net profit rises 6% in H1 2019