Gulf Hotels Group reports net profit: Bahrain

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Gulf Hotels Group has reported a net profit of BD1.1m in the second quarter of this year compared to BD701,000 in the second quarter of the previous year, with an increase in profit of BD405,000 or 57.73 per cent.

Earnings per share is 5 fils compared to 3 fils in the second quarter of last year.

Total comprehensive income is BD1.1m compared to a profit of BD389,000 for the second quarter of the previous year, an increase in profit of BD721,000 or 85.3pc.

Revenue for the second quarter was BD7.5m, compared to BD6.6m for the same period last year, with an increase of BD891,000 or 13.38 pc.

The increase in the net profit for the second quarter in comparison to the same period last year resulted mainly from an increase in different segments of revenue of BD891,000. Also, the net profit increased over the last year by BD464,000 due to the increase in profit of associates by BD64,000, dividend income BD96,000, interest income BD66,000 and BD238,000 from rental and other income.

During the six months of 2023, the company achieved a net profit of BD4.1m compared to BD2.8m in the six months of the previous year, with an increase of BD1.3m or 48.4pc.

The earnings per share are 19 fils compared to 12 fils in the six months of the last year.

Total comprehensive income was BD3.8m compared to a profit of BD2.7m for the six months of the previous year, with an increase in profit of BD1.1m or 42pc.

The revenue was BD16.3m, compared to BD14.7m for the same period last year, with an increase of BD1.6m or 10.95pc.

The total equity (excluding minority interests) for the period of six months ended June 30, 2023 was BD101m compared to BD103m for the financial year ended December 31, 2022, with a decrease of 1.8m or 1.77 pc.

The total assets for the YTD reached BD108m compared to BD111m for the financial year ended December 31, 2022, with a decrease of BD3.3m or 3pc.

Improvement

The increase in net profit for the six months in comparison to the same period last year resulted mainly from an increase in revenue of BD1.6m, besides increase in profit of associates by BD34,000, dividend income by BD167,000, interest income by BD233,000 and BD566,000 from rental and other income. On the other hand, operation expenses have increased proportionately with the increase in revenue over the same period last year.

Chairman Farouk Almoayyed said: “We are certainly pleased with the improvement in our financial performance post-pandemic, and whilst revenues remain a little behind 2019, bottom line conversion is significantly better. The acquisition of the Novotel Al Dana Resort will further strengthen the group’s revenue streams for the remainder of 2023 and beyond.”

Chief executive Garfield Jones added: “Not only will the addition of the Novotel Al Dana Resort to the group’s portfolio add to income streams, but with numerous synergies that exist with our other Bahrain hotels, this enables the further streamlining of costs and improvement in efficiency across the group.

Design work is now well advanced for the renovation of the public areas in both the Gulf Hotel and Crown Plaza hotel, with work expected to commence by the end of the year. This will be followed by a full refurbishment of the Novotel property.”