Alhokair Group widens Q1 loss to SAR 34.3 mln

Abdulmohsen Alhokair Group for Tourism and Development deepened Q1 2023 net loss to SAR 34.3 million, from SAR 32 million in the year-earlier period.

The higher losses were attributed to a 5% drop year-on-year (YoY) in revenues to SAR 163.84 million.

The hotel segment revenues decreased by 0.5% YoY to SAR 96.7 million mainly due to the group’s decision to close some low-performing hotels to improve profit margins.

Revenues from the entertainment segment also fell 10% YoY to SAR 59.33 million, hurt by seasonal factors due to the onset of the holy month of Ramadan at the end of the quarter.

Revenues from other segments also dropped by SAR 1.48 million to SAR 7.81 million in Q1 2023, from SAR 9.29 million in the year before. Further, gross profit declined 8.2% YoY to SAR 25.22 million.

The company also widened net loss by 30.3% from SAR 26.3 million in Q4 2022, as revenue fell 18.1% quarter-on-quarter (QoQ) to SAR 36.12 million. Revenues from the entertainment segment also tumbled by 38.6% YoY to SAR 59.33 million.

Shareholders’ equity, no minority interest, fell to SAR 255.4 million as of March 31, 2023, from SAR 339.2 million in the year-earlier period.

Accumulated losses reached SAR 58.96 million by the end of Q1 2023, accounting for 18.7% of the company’s SAR 315 million capital.

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