Manama, Bahrain: The shareholders of Bahrain Cinema Company (Cineco), market leaders in the entertainment industry in the Kingdom of Bahrain, also known as Cineco, approved the distribution of a cash dividend of 50% of the paid up capital, the equivalent of 50 fils per share equivalent to BD3,958,185 proposed by the board following the approval of the Central Bank of Bahrain.
The announcement was made during the Annual General Meeting (AGM) which was held on Thursday, the 29th of March 2018, at Cinema 2 in the Cineco Cineplex that is located within Wadi Al Sail Mall. The meeting was presided over by the Chairman of the Board, Dr. Esam Abdulla Fakhro and attended by members of the Board of Directors, the Executive Management team and the Shareholders of Bahrain Cinema Company.
The ratified financial result for the year 2017 reflected a drop in Cineco’s Operating Income as it measured a decrease over the figure recorded in the previous year by 35.14% with the company recording an Operating Income of BD 14.84 million for the financial year ended 31st December, 2017 as compared to the BD 22.88 million reported in 2016. The reason for the decline in the Operating Income of Bahrain Cinema Company for the year ending 31st December, 2017 is that from the 1st of July, 2017, the income and expenses of Cineco 20, City Centre were accounted in a separate associate Company. Therefore, in its financial statement, Cineco recorded only its share of net profit for the period.
The Net Profit reported for the financial year ended 31st December, 2017 is BD 34.70 million as compared to BD4.87 Million reported during the financial year ended 31st December, 2016. Cineco also reported that the Earnings Per Share of the year ended 31st December, 2017 was 438 fils as against the EPS of 62 fils registered in the same period of the previous year.
The remarkable increase in net profit is due to the sale of 50% of the ownership of City Centre Cinema location that resulted in the net profit of BD19.5 Million and also the resultant of 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.
Cineco has also registered a Net Loss of BD 2,628,768 for the Fourth Quarter of the year 2017 as against the Net Profit of BD 849,176 reported in the corresponding period of the financial year, 2016. This decline is purely due to the impairment of investments.
Speaking on the Company’s current investments, Dr. Esam Fakhro, Chairman of Bahrain Cinema Company said: “2017 has been a very prosperous and growth-oriented year for us in terms of the productive initiatives we have taken that are continuing to set a solid foundation for exponential progress in the foreseeable future. With regards to our culinary offerings, in the previous year, Bahrain Cinema Company opened a new Takatak restaurant for providing authentic Indian and Chinese cuisine, along with a first-of-its-kind Indian Street Food Cuisine Restaurant, Chaat and Chai in the Lulu Hypermarket in Hidd. Since the performance of Takatak outlet in Dragon Mall in Diyar Al Muharraq is as per our expectations and positively contributed to the Net Profit of the Company, Cineco is now planning to open similar Takatak outlets in other parts of Bahrain which will provide further impetus to the top line growth.”
“In terms of the primary movie and entertainment aspect of our business, we also successfully renovated Al Hamra Cinema, by completely overhauling its layout and facilities, thereby substantially enhancing its ambience and providing a modern facelift that has added to its popularity amongst the expatriates. In line with our aspirations to systematically and periodically augment our offerings throughout the Kingdom of Bahrain, we have wholly renovated the Saar Cineplex as well. In 2017, we also proudly unveiled the illustrious result of our high level joint venture with VOX Cinemas and introduced an IMAX Screen in City Centre Bahrain. We are confident that that our new partnership will see the Cineplex become one of the region’s most iconic entertainment destinations with the addition of new screens and countless new innovative and exclusive cinema and dining experiences. With a singular focus on meeting our customers’ evolving needs and maximising value for the shareholders, Cineco has been successful in developing our business footprint, providing a strong foundation for future growth,” he added.
Elaborating on the Company’s future, Mr. Ahmed Rashed, the Chief Executive officer of Bahrain Cinema Company said: “While the Company is beginning to move towards the next level of growth based on solid foundation built over the past 50 years, we always refocus our Company to be in the business where we lead by investing in new capability to capture future growth. In terms of our future, since the Kingdom of Saudi Arabia has allowed for the establishment and operation of Cinemas in its territory after 35 years, we are currently exploring opportunities to expand our business into that region through the opening of Cineplexes and Go-Karting tracks as well as Takatak and Rendezvous restaurant outlets.”
“With regards to our local offerings, the construction of a 10-Screen Cineplex in Oasis Mall in Juffair has just started, with its opening expected to take place in the 3rd quarter of 2018. In addition, the construction of the new ‘Awal Plaza’ residential cum commercial building in place of Awal Cinema has been successfully completed. The rental income from this building amongst many other projects in the works ensures a regular revenue stream to the Company in the coming years,” he added.
“Further solidifying our future, we are set to open ‘The Red Dragon’, a restaurant that is located in the Dining Village next to Dragon Mall within Diyar Al Muharraq which exclusively offers Chinese cuisine, in the third quarter of 2018. And as part of our diversification strategy, Cineco also has plans to embark on an indoor Go-karting venture, initially in the Kingdom of Bahrain and subsequently, in others parts of the G.C.C. as well. We look forward to a successful and eventful year ahead as we work on our investments in the best interests of both our customers and shareholders,” he concluded.
Cineco owns and operates a total of 47 cinema screens in the Kingdom of Bahrain and 47 screens in other GCC countries.
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.
© Press Release 2018