Tihama expands 9M 2022/23 losses to SAR 31.9M; Q3 at SAR 14M

Tihama Advertising and Public Relations Co. widened net losses to SAR 31.9 million in the nine-month period ended on Dec. 31, 2023, from SAR 20.5 million in the year-earlier period.

Higher losses were attributed to the year-on-year (YoY) decrease in revenues of the advertising segment by approximately SAR 1.8 million, given the pullback in revenues from existing sites and the expiration of rental contracts of some advertising sites.

Further, the production segment’s revenues fell YoY by approximately SAR 9.7 million, as the same period of the previous year included television series production projects. The distribution segment’s revenues also plunged YoY by nearly SAR 8 million after a number of major customers were lost during the current period compared to the same period of the previous year.

On the other hand, the retail division’s revenues increased YoY by almost SAR 5.2 million after the company expanded the segment’s branch network.

The 9M 2022/23 period also witnessed a SAR 10.3 million YoY decline in the gross profit from continued operations, mainly due to a decrease in the gross profit of the advertising segment and the production segment’s gross profit. Although revenues of the distribution segment retreated YoY by approximately SAR 8 million during the same period, the segment’s cost of revenues was not affected by this slump as a provision worth roughly SAR 7.5 million for slow-moving inventory was recorded during the current period, in addition to slow-moving inventory provision in the bookstores segment of around SAR 1.4 million.

Conversely, the retail segment’s gross profit increased YoY by nearly SAR 2.3 million in the 9M 2022/23 period following the expansion of the segment’s branch network.

During the same period, there was also a YoY uptick in general and selling expenses by SAR 6 million, recording financial reorganization expenses of approximately SAR 2.8 million, impairment losses in trade receivables and other debit balances of SAR 700,000, along with a hike in Zakat allocation by approximately SAR 5.5 million.

This increase was partially offset by the YoY rise in the group’s share of the associate companies’ earnings of SAR 9.5 million.

Additionally, other income advanced YoY by almost SAR 5.5 million during the nine-month period, thanks to an increase in profits on deposits and gains from unclaimed credit balances as rebate income. On the other hand, the comparative period included gains from the disposal of investment properties worth around SAR 1.5 million.

The third-quarter net loss widened by 55.6% to SAR 14 million, from SAR 9 million in the year before.

On a sequential basis, the company extended net losses from SAR 6.35 million in Q2 2023/24.

Total shareholders’ equity, after minority interest, stood at SAR 237 million as of Dec. 31, 2023, compared to SAR -20 million in the year-earlier period.

Accumulated losses reached SAR 141.4 million during the same period, accounting for 35.4% of the company’s SAR 400 million capital.

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