Budget Saudi Arabia’s First Quarter Profits Edge Up to SAR 69.7 Million

The United International Transportation Company (Budget Saudi Arabia) reported a slight increase in net profit, rising to SAR 69.7 million during the first quarter of 2024, a 0.5% increment from SAR 69.3 million in the same quarter last year. These results were announced following the estimation of financial outcomes for the period ending March 31, 2024.

Operating profit for the quarter was SAR 81.6 million, marking a 4.8% increase from SAR 77.8 million in the prior year’s first quarter. Earnings per share also saw a slight rise to SAR 0.98, up from SAR 0.97 last year.

The increase in revenue during the current quarter, compared to the same quarter last year, was primarily due to heightened short-term rental revenue, bolstered by stable utilization rates and expansions in both the short-term and long-term rental fleets. A notable factor contributing to this growth was the increased volume of used car units available, compared to the same period last year.

Net profit growth during the quarter is largely attributed to steady increases in both long-term and short-term rental revenues. However, adjustments to the used car price market—particularly the softening of prices and the sale of vehicles with comparatively higher net book values than last year—somewhat dampened profit gains. Additionally, increased finance costs from higher borrowings further influenced net profits.

Comparatively, revenue also saw an increase from the previous quarter, driven primarily by stable utilization and consistent earnings from short-term rentals, alongside successful deliveries in long-term leasing contracts. Although proceeds from car sales were lower, these factors helped boost overall performance.

Similarly, the net profit for the current quarter, when compared to the previous one, benefited from better utilization and an expanded fleet in both rental segments. This enhanced profitability, despite the lower revenue from used car sales, thanks to the robust revenue streams from both rental types, effectively mitigating potential negative impacts.