BAAN Holding Group Co. announces its Interim Financial results for the Period Ending on 2025-09-30 ( Nine Months )

Revenues for the current quarter amounted to SAR 152.67 million, compared to SAR 161.16 million for the same quarter of the previous year, representing a decrease of SAR 8.49 million, or 5.27%.

This decrease is mainly due to a decline in revenues from the hospitality sector, resulting from lower occupancy rates and average room rates, particularly in the Riyadh and Eastern regions.

In addition, there was a decline in revenues from the entertainment sector due to a decrease in visitor numbers and average spending.

Meanwhile, revenues from other activities increased as a result of catering and food service operations.

The Company recorded a net loss of SAR 26.55 million for the current quarter, compared to a net profit of SAR 7.24 million for the same quarter of the previous year, representing a decline of SAR 33.79 million.

This decline is mainly attributable to the decrease in revenues during the current quarter from the entertainment and hospitality sectors compared to the same quarter of the previous year, as well as the decline in gross profit, which decreased from SAR 44.25 million to SAR 28.12 million.

In addition, during the same quarter of the previous year, the Company recorded a reversal of expected credit loss provisions amounting to SAR 12.44 million, following the collection of receivables related to those provisions during that year.

Meanwhile, the decrease in financing costs helped mitigate the impact of the decline in revenues

Revenues for the current period amounted to SAR 497.82 million, compared to SAR 505.88 million for the same period of the previous year, representing a decrease of SAR 8.06 million (1.59%). The decrease was mainly due to lower revenues in the hospitality sector, resulting from a decline in occupancy rates and the average room rate, as well as a decrease in the entertainment sector revenues due to lower visitor numbers.

Meanwhile, revenues from other activities increased, primarily driven by growth in catering and hospitality services.

The current period’s losses amounted to SAR 43.20 million, compared to profits of SAR 17.52 million for the same period of the previous year. This was mainly due to lower revenues in the hospitality and entertainment sectors compared to the same period last year, as well as the impact of non-recurring insurance compensations of SAR 24.8 million and the reversal of expected credit loss provisions of SAR 12.44 million recognized in the previous year following the collection of the related receivables.

In addition, the current period includes pre-operating and setup costs related to the catering project, which was awarded during the first quarter of the current year.

Gross profit for the period amounted to SAR 114.24 million, compared to SAR 146.74 million for the same period of the previous year, representing a decrease of 22.15%.

Operating profit reached SAR 2.76 million, compared to SAR 53.05 million for the same period last year, a decline of 94.80%.

Total comprehensive loss for the period amounted to SAR 40.12 million, compared to total comprehensive income of SAR 17.84 million for the same period of the previous year.

Accumulated losses amounted to SAR 154.04 million as of the end of the current period, representing 48.90% of the Group’s subscribed capital of SAR 315 million. The primary reason for the increase in accumulated losses is the performance impact in the hospitality and entertainment sectors, where revenues from certain centers and branches were lower, negatively affecting the overall performance of these sectors.

The Group will implement several measures to reduce accumulated losses, including:

- Continuing the execution of the strategic transformation program and plan.

- Ongoing restructuring of the Group’s sectors to enhance operational and administrative efficiency.

- Continuous evaluation of the Group’s projects, including divestment from projects and income sources that negatively impact the Group’s performance or generate operating losses.

- Focusing on promising sectors, such as the catering sector, to improve the Group’s financial performance.

- Completing the procedures for the two agreements signed on 29 December 2024, which involve the acquisition of real estate assets through a capital increase and issuance of new shares to the sellers. Completion of these transactions is subject to regulatory approvals, relevant authorities, and the General Assembly.

These measures will be implemented in accordance with the regulations and instructions for companies listed on the Saudi Stock Exchange whose accumulated losses exceed 20% of their capital