SRMG swings to 50 mln profit in 9M 2017

05/11/2017 Argaam Exclusive

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Saudi Research and Marketing Group (SRMG) reported a net profit of SAR 50.3 million for the first nine months of 2017, compared to a net loss of SAR 110.5 million in the same period last year.

 

The net profit was attributed to higher revenue, particularly from public relations. Lower selling, general and administrative (SG&A) expenses also helped lift SRMG’s earnings. 



Financials (M)

Item 9m 2016 9m 2017 Change‬
Revenues 966.15 1,188.36 23.0 %
Gross Income 156.18 320.51 105.2 %
Operating Income (144.08) 73.85 151.3 %
Net Income (110.52) 50.29 145.5 %
Average Shares 80.00 80.00 -
EPS (Riyals) (1.38) 0.63 145.5 %

In Q3 2017, the research group turned to a net profit of SAR 25.5 million, compared to a net loss of SAR 80.6 million in the same quarter last year, backed by higher revenue and lower SG&A expenses.

 

When compared to the previous quarter, Q3 net profit more than tripled, thanks to a rise in gross profit due to higher revenues and lower costs, as well as a decrease in selling and marketing expenses. 



Current Quarter Comparison (M)

Compared With The
Item Q3 2016 Q3 2017 Change‬
Revenues 302.92 400.53 32.2 %
Gross Income 28.39 110.94 290.8 %
Operating Income (70.93) 32.52 145.8 %
Net Income (80.60) 25.52 131.7 %
Average Shares 80.00 80.00 -
EPS (Riyals) (1.01) 0.32 131.7 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2008 272.17 10.9 % 99.32 (7.6 %) 58.00 3.7 % 0.73
Q2 2008 325.69 8.4 % 154.01 7.7 % 87.70 (62.1 %) 1.10
Q3 2008 261.35 9.9 % 96.23 20.1 % 35.97 32.3 % 0.45
Q4 2008 483.02 46.5 % 153.77 18.6 % 42.78 (17.6 %) 0.53
Q1 2009 259.97 (4.5 %) 80.13 (19.3 %) 20.50 (64.7 %) 0.26
Q2 2009 245.20 (24.7 %) 89.79 (41.7 %) 10.73 (87.8 %) 0.13
Q3 2009 248.26 (5.0 %) 77.66 (19.3 %) 3.26 (90.9 %) 0.04
Q4 2009 215.11 (55.5 %) 45.63 (70.3 %) 10.87 (74.6 %) 0.14
Q1 2010 255.97 (1.5 %) 77.42 (3.4 %) 14.79 (27.8 %) 0.18
Q2 2010 279.52 14.0 % 96.90 7.9 % 35.30 229.1 % 0.44
Q3 2010 275.27 10.9 % 78.71 1.4 % 10.80 231.0 % 0.13
Q4 2010 256.07 19.0 % 79.08 73.3 % 23.54 116.5 % 0.29
Q1 2011 250.37 (2.2 %) 80.08 3.4 % 15.05 1.8 % 0.19
Q2 2011 277.25 (0.8 %) 93.11 (3.9 %) 33.60 (4.8 %) 0.42
Q3 2011 276.95 0.6 % 79.20 0.6 % 8.77 (18.8 %) 0.11
Q4 2011 284.38 11.1 % 100.25 26.8 % 42.89 82.2 % 0.54
Q1 2012 241.66 (3.5 %) 66.12 (17.4 %) 5.87 (61.0 %) 0.07
Q2 2012 272.33 (1.8 %) 98.06 5.3 % 24.83 (26.1 %) 0.31
Q3 2012 465.18 68.0 % 121.60 53.5 % 21.24 142.3 % 0.27
Q4 2012 422.02 48.4 % 110.13 9.8 % 66.30 54.6 % 0.83
Q1 2013 400.45 65.7 % 101.26 53.1 % (17.80) (403.1 %) (0.22)
Q2 2013 418.02 53.5 % 129.11 31.7 % 30.00 20.8 % 0.38
Q3 2013 467.45 0.5 % 115.17 (5.3 %) 1.14 (94.6 %) 0.01
Q4 2013 440.14 4.3 % 74.60 (32.3 %) (43.56) (165.7 %) (0.54)
Q1 2014 414.02 3.4 % 98.79 (2.4 %) (27.56) (54.8 %) (0.34)
Q2 2014 463.96 11.0 % 113.33 (12.2 %) 6.22 (79.3 %) 0.08
Q3 2014 438.13 (6.3 %) 93.71 (18.6 %) 2.38 108.0 % 0.03
Q4 2014 427.15 (3.0 %) 90.30 21.1 % (20.35) 53.3 % (0.25)
Q1 2015 390.62 (5.7 %) 99.72 0.9 % 19.72 171.5 % 0.25
Q2 2015 396.17 (14.6 %) 101.86 (10.1 %) 17.67 184.2 % 0.22
Q3 2015 338.17 (22.8 %) 65.77 (29.8 %) (6.74) (383.5 %) (0.08)
Q4 2015 360.45 (15.6 %) 76.47 (15.3 %) (186.49) (816.7 %) (2.33)
Q1 2016 328.00 (16.0 %) 66.03 (33.8 %) 21.72 10.2 % 0.27
Q2 2016 335.24 (15.4 %) 61.76 (39.4 %) (51.64) (392.3 %) (0.65)
Q3 2016 302.92 (10.4 %) 28.39 (56.8 %) (80.60) (1,095.6 %) (1.01)
Q4 2016 480.31 33.3 % 205.14 168.3 % 53.28 128.6 % 0.67
Q1 2017 392.70 19.7 % 112.78 70.8 % 18.04 (16.9 %) 0.23
Q2 2017 395.12 17.9 % 96.79 56.7 % 6.73 113.0 % 0.08
Q3 2017 400.53 32.2 % 110.94 290.8 % 25.52 131.7 % 0.32

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2008 39.66 % 24.45 % 20.51 %
Q2 2008 39.75 % 24.23 % 19.29 %
Q3 2008 40.31 % 25.19 % 19.65 %
Q4 2008 37.50 % 21.54 % 16.72 %
Q1 2009 36.40 % 19.64 % 13.81 %
Q2 2009 33.61 % 15.17 % 8.62 %
Q3 2009 32.46 % 13.77 % 5.67 %
Q4 2009 30.27 % 10.09 % 0.98 %
Q1 2010 30.12 % 9.79 % 0.73 %
Q2 2010 29.79 % 11.72 % 3.07 %
Q3 2010 29.11 % 12.00 % 4.20 %
Q4 2010 31.13 % 14.76 % 7.91 %
Q1 2011 31.55 % 15.05 % 7.98 %
Q2 2011 31.26 % 14.75 % 7.84 %
Q3 2011 31.25 % 14.55 % 7.63 %
Q4 2011 32.38 % 14.67 % 7.97 %
Q1 2012 31.35 % 13.42 % 7.19 %
Q2 2012 31.96 % 13.21 % 6.41 %
Q3 2012 30.55 % 13.56 % 6.44 %
Q4 2012 28.25 % 12.27 % 8.44 %
Q1 2013 27.63 % 12.36 % 7.32 %
Q2 2013 27.09 % 12.81 % 6.86 %
Q3 2013 26.68 % 11.88 % 5.66 %
Q4 2013 24.34 % 8.70 % (0.74 %)
Q1 2014 24.01 % 7.06 % (2.44 %)
Q2 2014 22.51 % 5.50 % (3.57 %)
Q3 2014 21.66 % 5.15 % (4.06 %)
Q4 2014 22.72 % 6.09 % (4.25 %)
Q1 2015 23.09 % 8.13 % (2.10 %)
Q2 2015 23.34 % 8.59 % (2.33 %)
Q3 2015 23.04 % 7.76 % (3.60 %)
Q4 2015 23.15 % 7.66 % (7.85 %)
Q1 2016 21.80 % 3.70 % (12.92 %)
Q2 2016 19.83 % (0.86 %) (17.48 %)
Q3 2016 17.54 % (5.84 %) (22.20 %)
Q4 2016 24.98 % (0.59 %) (9.30 %)
Q1 2017 27.00 % 3.53 % (3.94 %)
Q2 2017 28.20 % 6.75 % (0.16 %)
Q3 2017 31.50 % 12.62 % 6.21 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2008 80.00 4.61 2.92 15.22
Q2 2008 80.00 2.81 2.81 16.32
Q3 2008 80.00 2.92 2.92 16.71
Q4 2008 80.00 2.81 2.81 17.20
Q1 2009 80.00 2.34 2.30 15.41
Q2 2009 80.00 1.37 1.35 15.65
Q3 2009 80.00 0.97 0.88 15.66
Q4 2009 80.00 0.57 0.12 15.79
Q1 2010 80.00 0.50 0.09 15.89
Q2 2010 80.00 0.80 0.38 15.77
Q3 2010 80.00 0.90 0.54 15.98
Q4 2010 80.00 1.06 1.06 15.82
Q1 2011 80.00 1.06 1.06 16.51
Q2 2011 80.00 1.04 1.04 15.90
Q3 2011 80.00 1.01 1.01 16.00
Q4 2011 80.00 1.25 1.09 16.05
Q1 2012 80.00 1.14 0.97 15.11
Q2 2012 80.00 1.03 0.86 15.40
Q3 2012 80.00 1.19 1.02 15.68
Q4 2012 80.00 1.48 1.48 16.10
Q1 2013 80.00 1.18 1.43 14.74
Q2 2013 80.00 1.25 1.46 15.12
Q3 2013 80.00 1.00 1.21 15.18
Q4 2013 80.00 (0.38) (0.16) 14.63
Q1 2014 80.00 (0.50) (0.53) 14.28
Q2 2014 80.00 (0.80) (0.80) 14.37
Q3 2014 80.00 (0.78) (0.89) 14.35
Q4 2014 80.00 (0.49) (0.93) 14.04
Q1 2015 80.00 0.10 (0.45) 14.21
Q2 2015 80.00 0.24 (0.48) 14.51
Q3 2015 80.00 0.13 (0.70) 14.37
Q4 2015 80.00 (1.95) (1.46) 12.08
Q1 2016 80.00 (1.92) (2.30) 12.42
Q2 2016 80.00 (2.79) (2.98) 11.71
Q3 2016 80.00 (3.71) (3.68) 10.67
Q4 2016 80.00 (0.72) (1.68) 11.13
Q1 2017 80.00 (0.76) (0.75) 11.34
Q2 2017 80.00 (0.03) (0.03) 11.50
Q3 2017 80.00 1.29 1.29 11.72

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2008 10.15 15.99 3.07
Q2 2008 15.12 15.12 2.60
Q3 2008 11.65 11.65 2.04
Q4 2008 10.55 10.55 1.72
Q1 2009 13.27 13.50 2.01
Q2 2009 22.62 23.10 1.99
Q3 2009 31.27 34.45 1.93
Q4 2009 49.39 More than 100 1.77
Q1 2010 53.67 More than 100 1.67
Q2 2010 22.61 47.36 1.15
Q3 2010 22.13 36.87 1.24
Q4 2010 17.77 17.77 1.19
Q1 2011 17.00 17.00 1.09
Q2 2011 17.35 17.35 1.13
Q3 2011 16.60 16.60 1.05
Q4 2011 15.51 17.92 1.21
Q1 2012 21.81 25.60 1.64
Q2 2012 26.42 31.59 1.77
Q3 2012 19.45 22.67 1.47
Q4 2012 16.20 16.20 1.49
Q1 2013 18.61 15.40 1.49
Q2 2013 16.28 13.88 1.34
Q3 2013 20.19 16.62 1.32
Q4 2013 NEG NEG 1.47
Q1 2014 NEG NEG 1.39
Q2 2014 NEG NEG 1.45
Q3 2014 NEG NEG 1.47
Q4 2014 NEG NEG 1.18
Q1 2015 More than 100 NEG 1.17
Q2 2015 70.62 NEG 1.18
Q3 2015 99.84 NEG 0.89
Q4 2015 NEG NEG 4.78
Q1 2016 NEG NEG 3.27
Q2 2016 NEG NEG 3.51
Q3 2016 NEG NEG 1.99
Q4 2016 NEG NEG 3.04
Q1 2017 NEG NEG 2.50
Q2 2017 NEG NEG 2.58
Q3 2017 55.19 55.19 6.10

Business Segments (Million)

Compared With The
Period Publishing and visual and digital content Public relations and advertising sector Printing & packaging sector Others.. Disposals
Q1 2008 219.12 48.30 96.26 47.18 (138.70)
Q2 2008 288.15 67.61 95.81 54.90 (180.78)
Q3 2008 217.62 49.17 80.10 48.21 (133.76)
Q4 2008 332.91 48.71 196.09 46.34 (141.03)
Q1 2009 203.41 31.67 100.38 44.73 (120.21)
Q2 2009 214.68 37.04 79.51 45.18 (131.22)
Q3 2009 201.93 31.92 84.01 46.06 (115.65)
Q4 2009 155.15 31.62 93.42 62.49 (127.57)
Q1 2010 183.92 30.10 102.60 50.30 (110.95)
Q2 2010 212.96 35.93 112.17 45.47 (127.00)
Q3 2010 185.47 32.52 102.21 64.66 (109.59)
Q4 2010 199.38 32.94 85.42 34.85 (119.81)
Q1 2011 193.44 29.22 98.16 41.77 (112.22)
Q2 2011 210.12 35.46 118.84 34.64 (121.81)
Q3 2011 173.86 27.49 92.80 73.11 (98.86)
Q4 2011 216.91 355.70 91.18 65.90 (445.31)
Q1 2012 160.84 27.34 102.59 44.53 (93.64)
Q2 2012 228.64 33.85 111.50 27.78 (129.43)
Q3 2012 160.09 26.32 277.42 93.49 (92.13)
Q4 2012 175.83 329.87 274.38 23.20 (399.71)
Q1 2013 162.30 24.87 272.94 32.69 (92.35)
Q2 2013 185.38 34.01 279.63 18.93 (99.94)
Q3 2013 145.77 25.85 293.68 80.86 (78.72)
Q4 2013 163.39 303.84 295.51 34.14 (356.74)
Q1 2014 150.75 21.47 285.53 34.41 (78.14)
Q2 2014 164.20 40.38 327.40 19.25 (87.27)
Q3 2014 128.41 26.79 316.65 38.73 (72.46)
Q4 2014 148.57 280.72 302.73 26.41 (331.28)
Q1 2015 154.01 26.20 282.77 11.57 (83.93)
Q2 2015 143.32 26.39 291.81 11.89 (77.24)
Q3 2015 107.86 20.90 257.88 10.09 (58.56)
Q4 2015 114.63 249.70 275.30 10.35 (289.52)
Q1 2016 102.03 63.69 254.40 10.82 (102.94)
Q2 2016 100.36 63.45 259.38 11.21 (99.16)
Q3 2016 68.20 40.77 251.33 8.55 (65.93)
Q4 2016 248.27 232.05 240.28 6.22 (246.52)
Q1 2017 145.14 145.77 242.31 5.99 (146.50)
Q2 2017 124.76 136.15 253.08 4.43 (123.31)
Q3 2017 92.03 141.64 251.48 4.42 (89.05)

Current
Market Cap (M Riyal) 17,360.00
Enterprise Value (EV) (M) 16,698.58
Shares Outstanding ((M)) 80.00
EPS ( Riyal) (TTM) 6.57
Book Value (BV) ( Riyal) 38.87
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 32.24
P/E (TTM) 33.03
Price/book 5.58
Return on Average Assets (%) (TTM) 8.1
Return on Average Equity (%) (TTM) 17.7

Share Price

Saudi Research and Media Group (SRMG)


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