Manama Bahrain, 9th August 2017

The Directors of Bahrain Cinema Company, market leaders in the entertainment industry in the Kingdom of Bahrain, also known as Cineco, approved the financial statements for the second quarter of the financial year, 2017, reporting a record Net Profit of BD35.89 million for the first six months of 2017 as compared to BD1.4 Million reported during the corresponding period of the financial year, 2016 during the Board meeting held on Tuesday, the 8th of August, 2017. The Earnings Per Share of the period ending 30th June, 2017 was 567 fils as against EPS of 22 fils registered in the same period of the last year.  

The remarkable increase in net profit is due to the sale of 50% of the assets of City Centre Cinema location for the total amount of BD19.5 Million and also the resultant fair value increase due to revaluation of remaining 50% of the assets of the said Cinema. This was done as per the joint venture agreement announced on 27th September 2016, and was approved by the shareholders on 7th November 2016. As previously announced, this joint venture will operate and expand the current 8,000 square metre City Centre Cinema. The operating revenue for the first half of the financial year 2017 was BD10.58 million in comparison with BD 10.08 million reported in similar period of the year 2016 registering a growth rate of 5%. The quarterly net profit was BD.34.34 Million during the second quarter the year 2017, compared with BD.0.98 Million reported in second quarter last year.

Dr. Esam Abdulla Fakhro, Chairman of the Board of Bahrain Cinema Company mentioned that this is a landmark result and informed that the Board decided to share the joy with the shareholders by recommending the stock dividend of 25% of the paid up capital i.e., one new share will be distributed for every four shares, subject to obtaining approval from shareholders and Regulatory authorities.  The Board of directors also decided to hold the Extra-ordinary General Meeting on 28th August, 2017 for obtaining approval from the shareholders for the issue of 16,524,690 bonus issues.

Commenting on the company’s overall performance, Dr. Esam said: “Our Objective is to progress constantly by improving the quality of our services and the level of entertainment. We hope the financial year 2017 will end up with strong & positive note signaling the growth and prosperity.”

The Chief Executive Officer of Bahrain Cinema Company, Mr. Ahmed Rashed said: “Bahrain Cinema Company has shown tremendous growth in the past fifteen years. We continue to lead the market, in spite of increased competition, by owning more than half of the total number of screens in the Kingdom of Bahrain. We have very clear goals which are to further improve the company performance by implementing new strategies, adopting an enhanced business model and achieve greater results. We hope to build on this momentum and deliver superior results for all the stakeholders. I look forward to this year and I am confident that we will maximize our revenues, simultaneously enhancing the financial position of the company”.

Cineco owns and operates a total of 49 cinema screens in the Kingdom of Bahrain and 47 screens in Qatar.

Since its establishment in the Kingdom of Bahrain in 1968, Cineco succeeded over the years by pioneering many firsts, establishing benchmarks in Bahrain’s entertainment industry.

Cineco continues to strive towards maintaining sustainable growth through the philosophy of business excellence using the best business excellence model.

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© Press Release 2017