Seera achieves net profit of SR54 mln during Q3

Seera Holding Group achieved a net profit after zakat and tax in the third quarter of SR54 million, compared to a loss of SR72 million in the same quarter of last year.
This came following the announcement on Tuesday of the preliminary financial results for the period ending on September 30, 2022 (nine months).
The operational profit amounted to SR30 million in the third quarter, compared to a loss of SR61 million in the same quarter of the previous year.
In the 9-month period, the net loss after zakat and tax decreased to SR77 million, compared to SR302 million in the same period last year, at a rate of 74.5%.
The gross shareholders’ equity “without minority rights” amounted to SR5.3 billion in the current period, compared to SR5.5 billion in the same period last year, a decrease of 4.3%.
The loss per share in the current period is SR0.27, compared to SR1.02 in the same period last year.
Seera Group Records First Post-Pandemic Operating Profit of SR 30 million in Q3 2022
Seera Group’s gross booking value (GBV) increased by 93% for the third quarter of 2022 to SR2.7 billion compared to SR1.4 billion in Q3 2021, reaching a GBV of SR6.8 billion for 9 months of 2022, a 100% increase relative to SR3.4 billion for the same period in 2021. The group generated a net profit after zakat (before non-controlling interest) of SR54 million in Q3 2022, with total revenue of SR565 million.
Almosafer, Seera’s travel platform, which operates consumer and business travel segments, as well as Destination Management Company Discover Saudi and Hajj & Umrah tour operator Mawasim, has achieved 100% growth in GBV to SR1.8 billion in Q3 2022 from SR0.9 billion in Q3 2021, with a 74% increase in revenue of SR66 million to SR155 million from SR89 million as travel demand has surged across inbound, outbound and domestic tourism.
The consumer travel segment has experienced another record quarter of GBV and Revenue, with a GBV growth of 167% to SR1.2 billion in Q3 2022 from SR0.45 billion in Q3 2021 and a revenue growth of 135% to SR84.5 million from SR36 million. Almosafer has seen a continuous increase in leisure travel demand across operating markets and omnichannel customer touchpoints.
In the corporate and government segment, Almosafer Business, grew 24% from SR452 million in Q3 2021 to SR559 million in Q3 2022, with revenue of SR32 million, as Almosafer Business has continued to renew existing contracts and onboarded new corporate, government and semi-government sector clients to serve with travel management products.
The Hajj and Umrah segment, under the brand of Mawasim posted SR13 million revenue for Q3 2022, a significant increase from Q3 2021. The growth is fuelled by the rebound of demand for pilgrimage post-pandemic, new & eased Umrah visa regulations, as well as new source markets and regional leads.
The Destination Management segment, under the brand of Discover Saudi, recorded a GBV of SR26 million during Q3 2022, a growth of 44% compared to Q3 2021, as Saudi Arabia is further establishing itself as a popular destination amongst global and regional agents and their customers. The rise in events, conferences, and entertainment offerings has further fueled the growth of the DMC.
Seera’s Car Rental business Lumi has grown its revenue by 35% to SR188 million in Q3 2022 from SR139 million in Q3 2021, another showcase of Lumi’s steep growth trajectory of the past 3 years. The growth was driven by continued strength in the leasing business serving the private and public sector, as well as growth in the rental business through a network of branches and digital channels. Lumi has also launched its first used car sales showroom in Q3 2022 in Riyadh, to further diversify its offering, and regain funds, whilst maintaining a young fleet.
Seera’s Hospitality business recorded revenue of SR27 million representing a 350% growth in Q3 2022 compared to the same quarter in 2021, with the ramp-up of the unit’s Choice Hotels in Jeddah and increased demand from religious pilgrims for its Makkah properties.
The Group’s Corporate Ventures unit posted a GBV of SR601 million in Q3 2022, a growth of 86% as compared to Q3 2021, with revenue of SR201 million, with Seera’s largest investment Portman Travel Group (based in the UK) being a key contributor to this growth.
Group Revenue improved by 53%, achieving SR565 million in Q3 2022 vs. SR369 million in Q3 2021, an increase of 90% in the first nine months of 2022 at SR1.6 billion relative to SR841 million in the first nine months of 2021, driven by increased travel demand across verticals, whilst maintaining healthy revenue margins.
Net profit after zakat The company generated a net profit after zakat (before non-controlling interest) of SR54 million in Q3 2022 as compared to net loss after zakat (before non-controlling interest) of SR72 million, a 175% improvement, during the same quarter of previous year, primarily driven by growth in revenue and maintained operating cost. In the overall 9 month period ending September 30, 2022 the company generated net loss after zakat of SR77 million in 2022, a 75% improvement over 2021’s net loss after zakat of SR302 million from January to September.
Net profit after non-controlling interest The company generated a net profit after non-controlling interest of SR53 million in Q3 2022 as compared to a net loss of SR72 million during the same quarter of previous year, a 174% improvement, while in the first nine months of 2022, the company recorded a net loss after controlling interest of SR79 million relative to net loss after controlling interest of SR301 million in first nine months of 2021, approximately a 74% improvement.
GBV: The Group’s gross booking value (GBV) increased by 8% for Q3 2022 to SR2.7 billion vs. SR2.5 billion Q2 2022.
Group Revenue decreased by 1% in Q3 2022 vs. Q2 2022, achieving SR565 million in Q3 2022 vs. SR569 million in Q2 2022.
Gross profit increased by 15% in Q3 2022 at SR250 million vs. SR218 million in Q2 2022.
Net profit / (loss) after zakat: The company generated a net profit after zakat (before non-controlling interest) of SR54 million as compared to a net loss after zakat (before non-controlling interest) of SR68 million during the previous quarter.
GBV
YTD GBV in 2022 is 100% higher than in 2021 posting SR 6.8 billion in 2022 vs. SR 3.4 billion in YTD 2021 due to the resurgence of travel demand.
Revenue
Revenue increased by 90% in 2022 at SR 1.6 billion vs. SR 841 million in 2021 as a result of healthy margins and increased GBV.
Gross Profit
GP increased by 49% in 2022 at SR625 million vs. SR419 million in 2021
Net Loss after Zakat
The company generated a net loss after zakat (before non-controlling interest) of SR77 million in 2022 as compared to a net loss after zakat (before non-controlling interest) of SR302 million during the previous year.
We draw attention to note 21 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 nine-month periods ended 30 September 2021 has been restated. Our conclusion is not modified in respect of this matter.
Certain comparative figures are reclassified to conform to the current period classification.
1-The revenue for the current quarter is SR565 million as compared to SR369 million during the same quarter of the previous year showing an increase of 53%.
2-The gross profit for the current quarter is SR250 million as compared to SR186 million during the same quarter of the previous year with an increase of 34%. The gross profit for the current period is SR626 million as compared to SR419 million during the same period of the previous year with an increase of 49%.
3-The operating profit for the current quarter is SR30 million as compared to the operating loss of SR61 million for the same quarter of the previous year showing an improvement of 149%. The operating loss for the current period is SR69 million as compared to SR245 million during the same period of the previous year with an improvement of 72%.
4- The net profit after zakat and tax before non-controlling interest for the current quarter is SR54 million as compared to a net loss of SR72 million for the same quarter of the previous year showing an improvement of 175%.
The net profit after non-controlling interest for the current quarter is SR53 million as compared to net loss of SR72 million for the same quarter of previous year with an improvement of 174%.
The net loss after zakat and tax before non-controlling interest for the current period is SR77 million as compared to a net loss of SR302 million for the same period of the previous year showing an improvement of 75%.
The net loss after non-controlling interest for the current period is SR79 million as compared to a net loss of SR301 million for the same period of the previous year with an improvement of 74%.
5- The gross comprehensive profit for the current quarter before non-controlling interest is SR79 million as compared to a total comprehensive loss of SR67 million for the same quarter of the previous year increased by 218%. The total comprehensive profit after non-controlling interest for the current quarter is SR78 million as compared to a gross comprehensive loss of SR67 million for the same quarter of the previous year showing an increase of 216%.
The gross comprehensive loss for the current period before non-controlling interest is SR166 million as compared to the gross comprehensive loss of SR294 million for the same period of the previous year improved by 44%. The gross comprehensive loss after non-controlling interest for the current period is SR168 million as compared to a gross comprehensive loss of SR292 million for the same period of the previous year showing an improvement of 42%.
6-profits per share for the current quarter is SR-0.18 as compared to a loss per share of SR -0.25 for the same quarter of the previous year. The loss per share for the current period is SR -0.27 as compared to a loss per share of SR -1.02 for the same period of the previous year.
7-The shareholders’ equity (without non-controlling interest) as at the end of the current quarter is SR5,347 million as compared to SR5,589 million in the same quarter of the previous year (without minority interest) decreased by 4%.
8-The Company has adjusted its opening retained profits for an amount of SR 37.4 million during the current quarter and nine months period ended 30 September 2021. Refer to note 21 of the financial statements for details.