Alhokair Group’s Q3 topline weighed by seasonality of activity: CEO

Abdulmohsen Alhokair Group for Tourism and Development recorded a SAR 3.6 million share in profit from joint ventures in Q3 2024, against a SAR 1.8 million loss in the same period a year earlier, CEO Fahad Al Obailan told Argaam.

However, the share in the profit from joint ventures (JVs) during the nine-month period reached SAR 4.8 million, compared to SAR 4.2 million in the prior-year period, mainly driven by improved performance of those JVs and the group’s exit from the cinema JV, he added.

The decline in Q3 revenues quarter-on-quarter was mainly due to the seasonality of activity in the entertainment and hotel segments, as the Eid Al-Fitr and Eid Al-Adha fell in Q2 2024, which boosted revenues compared to the third quarter, he added.

Al Obailan pointed out that the company is focusing on developing and improving its operational performance by boosting sales and reducing expenses after generating a net profit of SAR 7.27 million during the third quarter due to an increase in its share of profits from JVs.

Moreover, the continuous follow-up of collecting receivables from customers contributed significantly to strengthening the firm’s liquidity and profitability, with SAR 12.44 million collected and the associated credit loss provisions recovered.

Al Obailan added that Alhokair Group is constantly seeking to provide innovative entertainment ideas and identities that are in line with the latest global trends, with a focus on meeting the needs of the local market, to provide unique and attractive entertainment experiences for families, while continuing to develop its centers in terms of the diversity of experiences provided and the quality of service.

The company has begun working on diversifying its sources of revenue to reduce reliance on seasonal segments, by boosting revenue and sales, as well as achieving positive growth across segments. In addition to its core activities in the fields of hotels and entertainment, Alhokair Group has various activities, including leasing and has entered the catering sector, leveraging its experience in operating and developing entertainment facilities.

Furthermore, Alhokair Group has previously announced kicking off its activity in providing catering services, in addition to its partnership with Newrest, a global operator in the field of catering, he noted.

Commenting on the company's rebranding to Baan Holding Group Co., the CEO explained that this move comes as part of the group’s transformation strategy, as the vision and mission were redesigned to focus on three core values:

construction, innovation, and growth. He indicated that this transformation aims to enhance the group's continuity in providing high-quality services in a spirit of innovation, with a high commitment to efficiency that meets the aspirations of customers, investors, and employees.

Al Obailan also stressed that the company is proceeding with implementing its strategy to raise operational efficiency and maximize and diversify revenues. He expressed confidence that these efforts will drive positive outcomes in the coming periods, supporting growth and innovation across the company’s various areas of operation.