Riyadh, Saudi Arabia –6 May 2019: 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.
Financial Highlights
Abdullah Aldawood, CEO at Seera 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, 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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Contact
Brunswick Group
Jade Mamarbachi
t: +971 50 6003829
