Seera’s Q1 2020 net profit rises to SAR 1.113 bln on Careem stake sale

Seera Group Holding’s net profit rose to SAR 1.113 billion for Q1 2020, compared to SAR 47 million in the same period last year.

The company attributed the profit increase to the gains on disposal of Careem stake, amounting SAR 1.563 billion.

On the other hand, the group incurred impairment losses of SAR 315 million, and recognized foreign currency loss on impairment of goodwill of SAR 13 million.

It also incurred net loss of SAR 123 million during the quarter with a decrease of more than fourfold compared to Q4 2019.

The group’s gross booking value (GBV) decreased by 18% Year-on-Year (YoY) in Q1 2020 to SAR 1.9 billion due to the outbreak of COVID-19, which affected the global economy, as well as travel and tourism sector.

Consumer travel recorded SAR 667 million in GBV for Q1 2020, whereas the online business posted SAR 600 million, a 50% growth over Q1 2019.

Car rental posted a 145% YoY increase in revenue to SAR 121 million.

When compared to the previous quarter, net profit increased primarily driven by the gains on disposal of Careem.