Seera Losses Decrease to SR68 mln, down 31%

Seera Losses Decrease to SR68 mln, down 31%
Seera Group Holding recorded a net loss after zakat and tax in the second quarter of SR68 million, compared to a loss of SR99 million in the same quarter of last year, down 31%.
This came after the announcement on Wednesday of the preliminary financial results for the period ending on 30.06.2022 (six months)
The operational loss amounted to SR44 million in the second quarter, compared to a loss of SR73 million in the same quarter of the previous year, down 40%.
As for the gross profit, it amounted to SR218 million in the second quarter, compared to SR174 million in the same quarter of the previous year, an increase of 25%.
The net loss after zakat and tax in the 6-month period amounted to SR131 million, compared to a loss of SR230 million in the same period last year, down 43%.
The loss per share in the current period was SR0.45, compared to a loss of SR0.78 in the same period last year.
The reason for the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:
Seera Group increases gross booking value by 108% in Q2 2022 due to strong resurgence of travel demand.
Seera Group’s gross booking value (GBV) increased by 108% for the second quarter of 2022 to SR2.5 billion compared to SR1.2 billion in Q2 2021, reaching a GBV of SR4.1 billion in H1 2022, a 105% increase relative to SR2.0 billion for the same period in 2021, due to high demand for the travel across inbound, outbound and domestic tourism sectors.

Almosafer, Seera’s Travel business, has achieved 89% growth in GBV from SR0.9 billion in Q2 2021 to SR1.7 billion in Q2 2022. The consumer travel unit has experienced its strongest quarter ever, with a GBV growth of 175% from SR0.4 billion in Q2 2021 to SR1.1 billion in Q2 2022, showcasing the strong demand for international and domestic bookings throughout the summer travel season across the unit’s omnichannel booking platforms. Almosafer Business (formerly elaa), the Group’s corporate and government travel management unit, grew 27% from SR473 million in Q2 2021 to SR600 million in Q2 2022, as the business continues to serve corporate, government and semi-government sector clients with travel management products.
Seera’s Car Rental unit “Lumi” has grown its revenue by 40% from SR122 million in Q2 2021 to SR171 million in Q2 2022, as a continuation of a growth trajectory the Lumi brand has embarked on over the past two years. Ongoing and newly secured leasing agreements with private and public sector clients have contributed to the growth of the unit, whereas consumer bookings through Lumi’s mobile app and retail outlets at airports and within key city locations across the Kingdom have steadily increased.
Mawasim, Seera’s Hajj and Umrah business, posted SAR 10 million revenue for Q2 2022, a significant increase from Q2 2021. The growth is fuelled by a returned demand in Umrah pilgrimages as restrictions in terms of country level or Covid-19 were largely lifted, which has enabled the business to effectively serve new source markets, as well as regional customers.
Discover Saudi, Seera’s integrated DMC recorded a GBV of SR24 million during Q2 2022, a growth of 50% compared to Q2 2021 as the demand for inbound tourism has seen unprecedented growth this quarter due to the reinstatement of visa on arrival options for US, UK, Schengen visa holders and the overall promotion of Saudi Arabia as a must-visit tourism destination.
Seera’s Hospitality unit yielded revenue of SR27 million representing a 93% growth in Q2 2022 compared to the same quarter in 2021, with increased occupancies in Makkah properties, due to increased Umrah and pre-Hajj demand, as well as two Choice Hotels in Jeddah seeing steady growth since opening in January 2022.
The Group’s Corporate Ventures unit posted a GBV of SR 547 million in Q2 2022, a growth of 402% as compared to Q2 2021, as Europe has seen a significant resurgence of travel across corporate, business and leisure travel, with Seera’s largest investment, the Portman Travel Group (based in the UK) reaping benefits.
Group Revenue improved by 99%, achieving SR569 million in Q2 2022 vs. SR286 million in Q2 2021, an increase of 133% in H1 2022 at SR1.1 billion relative to. SR472 million in H1 2021, driven by increased demand for travel across verticals, whilst maintaining healthy revenue margins.
Net loss after zakat The company generated a net loss after zakat (before non-controlling interest) of SR69 million in Q2 2022 as compared to net loss after zakat (before non-controlling interest) of SR99 million, a 30% improvement, during the same quarter of previous year, primarily driven by Growth in revenue and maintaining operating cost. In the overall period ending Jun 30, 2022the company generated net loss after zakat of SR132 million in 2022, a 42% improvement over H1 2021’s net loss after zakat of SR229 million.
Net loss after non controlling interest The company generated a net loss after non-controlling interest of SR68 million in Q2 2022 as compared to net loss of SR99 million during the same quarter of previous year, a 31% improvement, while in H1 2022, the company recorded a net loss after controlling interest of SR131 million relative to net loss after controlling interest of SR230 million in H1 2021, approximately a 43% improvement.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
GBV: The Group’s gross booking value (GBV) increased by 56% for Q2 2022 to SR2.5 billion vs. SR1.6 billion Q1 2022. which was a testament to the rebound in the travel market.
Group Revenue increased by 15% in Q2 2022 vs. Q1 2022, achieving SR 569 million in Q2 2022 vs. SR 493 million in Q1 2022.
Gross profit increased by 38% in Q2 2022 at SR218 million vs. SR158 million in Q1 2022.
Net loss after zakat the company generated a net loss after zakat (before non-controlling interest) of SR69 million as compared to net loss after zakat (before non-controlling interest) of SR63 million during the previous quarter.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
GBV
YTD GBV in 2022 is 105% higher than 2021 posting SR4.1 billion 2022 vs. SR2.0 billion in YTD 2021 due to the resurgence of travel demand.
Revenue
Revenue increased by 133% in 2022 at SAR 1.1 billion vs. SAR 472 million in 2021 as a result of healthy margins and increased GBV.
Gross Profit
GP increased by 61% in 2022 at SR 375 million vs. SR 233 million in 2021
Net Profit after Zakat
The company generated a net loss after zakat (before non-controlling interest) of SR132 million in 2022 as compared to net profit after zakat (before non-controlling interest) of SR229 million during the previous year.
It concluded: “We draw attention to note 20 to the interim condensed consolidated financial statements of the Company and its subsidiaries which indicates that the comparative information presented as at and for the year ended 31 December 2021, for the three-month and six-month periods ended 30 June 2021 and for the three-month period ended 31 March 2021 has been restated. Our conclusion is not modified in respect of this matter”.
Certain comparative figures are reclassified to conform to current period classification.
Remarks/other information:
1- The revenue for the current quarter is SR569 million as compared to SR286 million during the same quarter of previous year showing an increase of 99%.
2- The gross profit for the current quarter is SR 218 million as compared to SR 174 million during the same quarter of previous year with an increase of 25%. The gross profit for the current period is SR 375 million as compared to SR 233 million during the same period of previous year with an increase of 61%.
3- The operational loss for the current quarter is SR 44 million as compared to SR 73 million for the same quarter of previous year showing an improvement of 40%.The operating loss for the current period is SR 99 million as compared to SR 184 million during the same period of previous year with an improvement of 46%.
4- The net loss after zakat and tax before non controlling interest for the current quarter is SR 69 million as compared to net loss of SR 99 million for the same quarter of previous year showing an improvement of 30%.
The net loss after non controlling interest for the current quarter is SR 68 million as compared to net loss of SR 99 million for the same quarter of previous year with an improvement of 31%.
The net loss after zakat and tax before non controlling interest for the current period is SR 132 million as compared to net loss of SR 229 million for the same period of previous year showing an improvement of 42%.
The net loss after non controlling interest for the current period is SR 131 million as compared to net loss of SR 230 million for the same period of previous year with an improvement of 43%.
5- The total comprehensive loss for the current quarter before non controlling interest is SR 143 million as compared to total comprehensive loss of SR 100 million for the same quarter of previous year increased by 43%. The total comprehensive loss after non controlling interest for the current quarter is SR 142 million as compared to total comprehensive loss of SR 100 million for the same quarter of previous year showing an increase of 42%.
The total comprehensive loss for the current period before non controlling interest is SR 246 million as compared to total comprehensive loss of SR 226 million for the same quarter of previous year increased by 9%. The total comprehensive loss after non controlling interest for the current quarter is SR 245 million as compared to total comprehensive loss of SR 227 million for the same quarter of previous year showing an increase of 8%.
6- Loss per share for the current quarter is SR -0.24 as compared to loss per share of SR -0.34 for the same quarter of previous year. Loss per share for the current period is SR -0.45 as compared to loss per share of SR -0.78 for the same period of previous year.
7- The shareholders equity (without non controlling interest) as at the end of the current quarter is SR 5,265 million as compared to SR 5,650 million in the same quarter of previous year (without minority interest) decreased by 7%.
8- The Company has adjusted its opening retained earnings for an amount of SR 37.4 million during the current quarter and six months period ended 30 June 2022. Refer to note 20 of the financial statements for details.