Seera turns to SAR 126 mln profit in H1 2023; Q2 at SAR 70.5 mln

Year-to-date, the group’s net booking value (NBV) leapt 38% higher than 2022 from SAR 4.3 billion to SAR 5.9 billion in 2023, due to the resurgence of travel demand.

Also in 2023, revenue surged by 49% to SAR 1.47 billion from SAR 985 million in 2022 as a result of healthy margins and increased NBV. Further, gross profit grew to SAR 657 million in 2023, up 71% from SAR 385 million in the year before.

Seera posted a net profit after Zakat (before non-controlling interest) of SAR 124 million in 2023, compared to a net loss of SAR 131 million a year ago.

Excluding the impact of one-off items of SAR 14.9 million in income from Careem holdback and SAR 12 million in reversal of impairment losses, the company saw a normalized net profit of SAR 97 million in 2023, versus a net loss of SR 131 million, marking a 174% year-on-year (YoY) improvement.

Seera’s Q2 2023 net profit came in at SAR 70.51 million, compared to losses of SAR 69.08 million in the corresponding period of the year before. This was because NBV jumped by 23% YoY to SAR 3.2 billion by the end of the three-month period, with revenues also up 37% YoY to SAR 716 million.

While on track for sustainable and diversified growth, the group witnessed the highest quarterly post-pandemic net profit, driven by positive business results amid great operational efficiency and high demand in all sectors.

For the second straight quarter, the group recorded a positive group-wide operating profit of SAR 102 million in Q2 2023, against an operating loss of SAR 49 million in Q2 2022. An overall net profit after non-controlling interest of SAR 67 million was recorded during the second quarter of this year, a 199% YoY uptick.

Despite seeing significant growth across all segments, overall operating expenses remained stable, with revenue growth outpacing costs, pushing the group towards profitability in the second quarter of 2023.

With the exceptionally high demand for leisure and religious travel during the summer season, Almosafer, Seera’s travel platform, logged a 24% YoY rise in NBV to SAR 2.1 billion in Q2 2023.

Seera’s car rental & leasing business, Lumi, posted a 36% YoY growth in revenues to SAR 233 million in Q2 2023, supported by the renewal of the newly-signed rental and lease contracts.

During the quarter, Lumi signed long-term lease contracts worth SAR 471.2 million with Saudi Aramco. The continued success of the used car sales segment fueled growth and profitable fleet turnover for the business, enabled by the expansion of new showrooms in Jeddah. Lumi’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q2 2023 stood at SAR 140 million, up 41% from SAR 99 million in the year-earlier period.

The hospitality business' revenues advanced to SAR 65 million in Q2 2023, a 132% YoY hike, led by healthy occupancy levels at hotels operational in the company's portfolio across the Kingdom and improved average daily rates. The segment’s EBITDA edged 724% higher YoY to SAR 28 million by the end of the quarter.

Sequentially, Q2 net profit climbed by 27.1% from SAR 55.49 million, as the group’s NBV rose by 23% quarter-on-quarter (QoQ) to SAR 3.2 billion.

During the same quarter, Seera’s revenue plummeted by 5% QoQ to SAR 716 million.

Shareholders’ equity, after minority interest, reached SAR 5.61 billion by the end of H1 2023, against SAR 5.26 billion in the year-earlier period.

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