Abdulmohsen Alhokair Group for Tourism and Development (Alhokair Group) said accumulated losses amounted to SAR 130 million, representing 23.6% of capital.
The company, in a bourse filing, attributed the losses to COVID-19 impact and the precautionary measure taken to contain the spread of coronavirus, leading to entertainment centers closed from March 15 to June 20, 2020.
The gradual opening of entertainment centers started from June 21, 2020, based on market demand.
Moreover, the suspension of international flights adversely affected hotel occupancy rates in all regions, particularly the Western Region. In addition, non-recurring losses resulted from the closure of several low performing locations during 2018 and 2019.
However, the company reported an increase in operating expenses due to higher renewal expat work permit costs, licenses renewal fees, as well as utility expenses.
Alhokair Group said it would be subject to the Capital Market Authority (CMA) regulations regarding companies with accumulated losses reaching 20% of capital or more.
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