Manama - Bahrain Cinema Company, also known as Cineco, has lined up expansion plans that would help it achieve “unprecedented positive results, both on financial and experiential scales”, a top official has said.
Chief executive Ahmed Rashed said in a statement that the past year was “enormously prosperous for us in terms of the success we achieved through the numerous strategic business initiatives we executed that served to substantially augment the movie experience for customers.”
The statement was issued to announce financial results for 2017 that have been approved by the board of directors.
Chairman Dr Esam Abdulla Fakhro said the board has proposed a cash dividend of 50pc of paid-up capital or 50 fils per share.
The company reported a record net profit of BD34.7 million for 2017, as against BD4.87m reported for 2016.
Earnings per share were 438 fils as against 62 fils in the previous year.
The increase in net profit is due to the sale of 50pc of the assets of Cineco 20 in City Centre Bahrain for a total of BD19.5m and also the resultant fair value increase due to revaluation of remaining 50pc of the assets.
This was done as per the joint venture agreement announced on September 27, 2016, and approved by the shareholders on November 7, 2016.
Operating revenue for 2017 was BD14.84m in comparison with BD22.88m in 2016, registering a decrease of 35.14pc.
The reason for the decline in the operating income is that from July 2017, the income and expenses of Cineco 20, City Centre Bahrain were accounted in a separate associate company.
Therefore, in its financial statement, Cineco recorded only its share of net profit for the period.
Cineco has also registered a net loss of BD2,628,768 for the fourth quarter of 2017 as against net profit of BD849,176 in the corresponding period of 2016.
This decline is purely due to the impairment of investment amounting to BD2.8m in Qatar Bahrain International Cinema and Al Murjan Restaurant in Qatar in the fourth quarter of 2017.
The board decided to impair due to geopolitical instability prevailing between Qatar and other GCC countries.
Cineco owns and operates 49 cinema screens in Bahrain and 47 screens in Qatar.
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