Sera records losses of SR72 mln during the 3Q, down 60%

Seera Group Holding Company recorded losses after zakat and tax of SR72 million during the third quarter, compared to losses of SR180 million during the same quarter of the previous year, a decline of 60%.

This comes after Seera Group Holding announced its interim financial results for the period ending on 2021-09-30 (nine months).

The operational loss amounted to SR61 million during the third quarter, compared to a loss of SR175 million during the same quarter of the previous year, a decrease of 65%.

The gross profit amounted to SR186 million during the third quarter, compared to SR30 million during the same quarter of the previous year, a growth of 520%.

The net loss after zakat and tax during the current period amounted to SR302 million, compared to a profit of SR760 million during the same period of the previous year.

The loss per share during the current period amounted to SR1, compared to a profit of SR2.55 during the same period of the previous year.

The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is due to strong summer travel season.

Seera Group recorded a 520% increase in Gross Profit across business units, compared to the third quarter of 2020, fuelled by a strong recovery of domestic and international travel and a summer season travel demand comparable to pre-pandemic levels.

With borders largely open, travel restrictions eased and vaccination drives close to completion in the Kingdom, travellers have been making the most of the summer season to venture out or explore their home country as bookings have increased across the group’s travel verticals from business to consumer travel, car rental and beyond.

As a result of Seera’s continued investment into product offering, technology, as well as domestic & inbound infrastructure, the Group witnessed growth across travel products with a revenue increase of 160% compared to Q3 2020 and 29% compared to the previous quarter this year.

Further supporting the tourism growth in Saudi Arabia, Seera Group’s Hospitality Unit and Kaden Investment signed a master hotels development agreement in July 2021, to manage and develop hotels in Saudi Arabia.

The first hotel in the joint venture is set to open in mega-development Riyadh Front. Seera Group also signed a financing agreement with the Tourism Development Fund in September 2021, to establish and operate the Raghadan Tourist Resort, the first sustainable tourism project in the Al Baha region – one of the main investment destinations identified under Saudi Arabia’s National Tourism Strategy.

Consumer Travel (CT) achieved a Gross Booking Value growth of 181% up to SAR 616 million in Q3 2021 vs. SR 219 million in Q3 2020. With a focus on domestic destinations and a shift of marketing initiatives geared towards ‘traditional’ summer destinations to new, trending and accessible destinations, Consumer Travel has managed to continue its omni-channel journey with elevated success.

Domestic tourism has maintained and further grown its level of importance for Saudi travellers, with domestic flight & hotel bookings accounting for over 43% of the overall volume. However; bookings also increased across flights, hotels, activities and packages across various international destinations that were previously not considered top priority, due to ease of quarantine free entry, including eastern European destinations, island escapes and city trips.

Seera’s Car Rental Unit grew its revenue by 35% to SR 140 million in Q3 2021 vs. SR 104 million in Q3 2020 under the Lumi brand umbrella. With the launch of a dedicated app booking platform and a new web platform underway, Lumi has made strides to upgrade the car rental experience for users and minimize friction and time spent upon pickup, through a streamlined process. The Unit has furthermore launched a one-of-a-kind partnership with Harley Davidson to offer motorcycle rentals in Saudi Arabia, a move that has supported the brand’s awareness and equity trajectory.

With the opening of KSA borders and resumption of tourist visa issuance in August 2021, Discover Saudi, the Group’s Destination Management Company, has focused efforts on catering to the increased number of leads for inbound packages and itineraries from travel agents all over the globe. With the kick-off of a series of familiarization trips, the DMC has introduced travel agents from the US, Asia and beyond to the wonders of the Kingdom. Launched in July 2021, Discover Saudi’s online distribution channel, which allows for the DMC to distribute its non-air and air product content to OTAs, aggregators and platforms, has signed agreements with some of the biggest players in the travel industry and beyond.

Seera’s Travel Management (elaa) has experienced a significant growth in Gross Booking Value for Q3 2021 compared to the same quarter in 2020, largely driven by a resumption of business travel across corporates and government entities. The digitization of travel management has also seen improvements across elaa accounts with 30% of all corporate and government bookings now being placed through the brand’s digital portal.

The Group has also strengthened its religious travel services by integrating Mawasim, its Hajj and Umrah division, with Maqam, the official global distribution system platform of the Saudi Ministry of Hajj & Umrah. Maqam is designed to provide a simplified and unified portal for all details regarding booking the pilgrimage from anywhere in the world. Mawasim and Maqam (the only Saudi–authorised portal) came together to redefine the future of travel for global pilgrims to the Kingdom.

Under the Corporate Ventures vertical, Seera Group has successfully led a SR 28 Million Series A funding round of financing for Siwar, a Saudi-based food-tech startup, including participation by other prominent strategic investors. Siwar was launched in 2020 to meet the growing and untapped needs of a new generation of consumers within the F&B market, with a focus on the ‘ready to eat food’ segment.

 The revenue for the current quarter is SR 369 million as compared to SR 142 million during the same quarter of previous year showing an increase of 160%. The revenue for the period is SR 841 million as compared to SR 677 million during the same period of previous year showing an increase of 24%.

 The gross profit for the current quarter is SR 186 million as compared to SAR 30 million during the same quarter of previous year with an increase of 520%. The gross profit for the current period is SAR 419 million as compared to SR 242 million during the same period of previous year with an increase of 73%.

 The operating loss for the current quarter is SAR 61 million as compared to SAR 175 million for the same quarter of previous year with a variance of 65%. The operating loss for the current period is SAR 245 million as compared to SAR 438 million for the same period of previous year with a variance of 44%

The net loss after zakat and tax before non controlling interest for the current quarter is SAR 72 million as compared to net loss of SR 180 million for the same quarter of previous year showing a variance of 60%. The net loss after zakat and tax before non controlling interest for the current period is SR 302 million as compared to net profit of SAR 760 million for the same quarter of previous year showing a decrease of 140%.

The net loss after non controlling interest for the current quarter is SAR 72 million as compared to net loss of SR 177 million for the same quarter of previous year with a decrease of 59%. The net loss after non controlling interest for the current period is SAR 300 million as compared to net profit of SAR 766 million for the same period of previous year with a decrease of 139%.

 The total comprehensive loss for the current quarter before non controlling interest is SAR 66 million as compared to total comprehensive loss of SR 174 million for the same quarter of previous year decreased by 62%. The total comprehensive loss before non controlling interest for the current period is SR 293 million as compared to total comprehensive income of SR 753 million for the same period of previous year showing a decrease of 139%.

The total comprehensive loss for the current period after non controlling interest is SAR 67 million as compared to total comprehensive loss of SAR 172 million for the same quarter of previous year decreased by 61%. The total comprehensive loss after non controlling interest for the current period is SAR 292 million as compared to total comprehensive income of SAR 758 million for the same period of previous year showing a decrease of 138%.

 Earnings per share for the current quarter is SR -0.24 as compared to earnings per share of SR -0.59 for the same quarter of previous year.

 Earnings per share for the current period is SR -1.00 as compared to earnings per share of SR 2.55 for the same period of previous year.

The shareholders equity (without non controlling interest) as at the end of the current period is SAR 5,589 million as compared to SR 6,620 million in the same period of previous year (without minority interest) decreased by 15.6%.