Riyadh, Saudi Arabia : Seera Group (formerly Al Tayyar Travel Group), (the “Company”) (Tadawul: 1810) – the Middle East’s leading technology-powered travel and tourism company today announced financial results for the first quarter ended 31 March, 2019.
- Group gross booking value (GBV) dropped slightly by 5% in Q1 2019 to SAR 2bn vs. SAR 2.1bn in Q1 2018; despite non-renewal of the Ministry of Education (MOE) contract which on average contributed around 30% to the Group’s revenue. However, the decline was offset by strong GBV growth in consumer travel and car rental units. The MOE contract had a direct impact on the rest of the financial numbers.
- Group revenue declined marginally by 3% in Q1 2019 to SAR 466m vs SAR 482m in Q1 2018
- Group revenue grew, on a sequential Q4 2018 to Q1 2019 basis, by 5% from SAR 444m to SAR 466m.
- Consumer Travel recorded SAR 666m in GBV with the online business posting 30% growth in GBV, well positioned to exceed the SAR 3bn for FY 2019
- Car Rental posted significant jump in revenue, surging 60% to SAR 49m
- Hospitality yielded revenue of SAR 32m representing a SAR 3.5m drop from the previous period, primarily due to maintenance undertaken on certain properties ahead of the Hajj and Umrah season.
Abdullah Aldawood, CEO atSeera Group said:
"Our performance this quarter illustrates how far Seera Group has progressed along its transformation journey. Despite the non-renewal of our contacts with the MOE, the massive growth in our Consumer Travel business, particularly our Online sales which grew by 30% this quarter, and our diversification strategy continue to drive our financial performance. We will continue to focus on investing in our core travel businesses of Consumer Travel, Travel Management and Haj & Umrah in line with our transformation strategy."
The online business within Group’s Consumer Travel SBU posted Gross Booking Value (GBV) of SAR 481 million, 30% higher versus SAR 370 million in Q1 2018.
Gross profit was SAR 302 million in Q1 2019 as compared to SAR 355 million in Q1 2018. The reasons for the decline reflect the non-renewal of the Ministry of Education (MOE) contract, costs associated with changes in product mix and increased contribution from online sales and travel services in the United Kingdom. These business lines have lower margins as compared to other revenue streams of the Company and has resulted in lower operating profit.
Total operating expense in Q1 2019 was SAR 233 million, representing an increase of 10% compared to Q1 2018. SG&A is higher as compared to the same quarter due to expansion in the consumer online business. Operating expenses as a percentage of revenue is 50%, which is below the international peer average.
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© Press Release 2019