Q3 2022 vs Q3 2021
Seera Group’s gross booking value (GBV) increased by 93% for the third quarter of 2022 to SAR 2.7 billion compared to SAR 1.4 billion in Q3 2021, reaching a GBV of SAR 6.8 billion for 9 months of 2022, a 100% increase relative to SAR 3.4 billion for the same period in 2021. The group generated a net profit after zakat (before non-controlling interest) of SAR 54 million in Q3 2022, with a total revenue of SAR 565 million.
Almosafer, Seera’s travel platform, which operates consumer and business travel segments, as well as Destination Management company Discover Saudi and Hajj & Umrah tour operator Mawasim, has achieved 100% growth in GBV to SAR 1.8 billion in Q3 2022 from SAR 0.9 billion in Q3 2021, with a 74% increase in revenue of SAR 66 million to SAR 155 million from SAR 89 million as travel demand has surged across inbound, outbound and domestic tourism.
The consumer travel segment has experienced another record quarter of GBV and Revenue, with a GBV growth of 167% to SAR 1.2 billion in Q3 2022 from SAR 0.45 billion in Q3 2021 and a revenue growth of 135% to SAR 84.5 million from SAR 36 million. Almosafer has seen continuous increase in leisure travel demand across operating markets and omnichannel customer touchpoints.
In the corporate and government segment, Almosafer Business, grew 24% from SAR 452 million in Q3 2021 to SAR 559 million in Q3 2022, with a revenue of SAR 32 million, as Almosafer Business has continued to renew existing contracts and onboarded new corporate, government and semi-government sector clients to serve with travel management products.
The Hajj and Umrah segment, under the brand of Mawasim posted SAR 13 million revenue for Q3 2022, a significant increase from Q3 2021. The growth is fuelled by the rebound of demand for pilgrimage post pandemic, new & eased Umrah visa regulations, as well as new source markets and regional leads.
The Destination Management segment, under the brand of Discover Saudi recorded a GBV of SAR 26 million during Q3 2022, a growth of 44% compared to Q3 2021, as Saudi Arabia is further establishing itself as a popular destination amongst global and regional agents and their customers. The rise in events, conferences and entertainment offerings has further fueled the growth for the DMC.
Seera’s Car Rental business Lumi has grown its revenue by 35% to SAR 188 million in Q3 2022 from SAR 139 million in Q3 2021, another showcase of Lumi’s steep growth trajectory of the past 3 years. The growth was driven by continued strength in the leasing business serving the private and public sector, as well as growth in the rental business through a network of branches and digital channels. Lumi has also launched its first used car sales showroom in Q3 2022 in Riyadh, to further diversify its offering, and regain funds, whilst maintaining a young fleet.
Seera’s Hospitality business recorded a revenue of SAR 27 million representing a 350% growth in Q3 2022 compared to the same quarter in 2021, with the ramp up of the unit’s Choice Hotels in Jeddah and increased demand from religious pilgrims for its Makkah properties. The Group’s Corporate Ventures unit posted a GBV of SAR 601 million in Q3 2022, a growth of 86% as compared to Q3 2021, with a revenue of SAR 201 million, with Seera’s largest investment Portman Travel Group (based in the UK) being a key contributor to this growth.
Group Revenue improved by 53%, achieving SAR 565 million in Q3 2022 vs. SAR 369 million in Q3 2021, an increase of 90 % in the first nine months of 2022 at SAR 1.6 billion relative to SAR 841 million in the first nine months of 2021, driven by increased travel demand across verticals, whilst maintaining healthy revenue margins.
Net profit after zakat The company generated a net profit after zakat (before non-controlling interest) of SAR 54 million in Q3 2022 as compared to net loss after zakat (before non-controlling interest) of SAR 72 million, a 175% improvement, during the same quarter of previous year, primarily driven by growth in revenue and maintained operating cost. In the overall 9 month period ending September 30, 2022 the company generated net loss after zakat of SAR 77 million in 2022, a 75 % improvement over 2021’s net loss after zakat of SAR 302 million from January to September.
Net profit after non controlling interest The company generated a net profit after non-controlling interest of SAR 53 million in Q3 2022 as compared to a net loss of SAR 72 million during the same quarter of previous year, a 174% improvement, while in the first nine months of 2022, the company recorded a net loss after controlling interest of SAR 79 million relative to net loss after controlling interest of SAR 301 million in first nine months of 2021, approximately a 74% improvement.
Q3 2022 vs Q2 2022
GBV: The Group’s gross booking value (GBV) increased by 8 % for Q3 2022 to SAR 2.7 billion vs. SAR 2.5 billion Q2 2022.
Group Revenue decreased by 1% in Q3 2022 vs. Q2 2022, achieving SAR 565 million in Q3 2022 vs. SAR 569 million in Q2 2022. Gross profit increased by 15% in Q3 2022 at SAR 250 million vs. SAR 218 million in Q2 2022
Net profit / (loss) after zakat The company generated a net profit after zakat (before non-controlling interest) of SAR 54 million as compared to net loss after zakat (before non-controlling interest) of SAR 68 million during the previous quarter.
2022 YTD vs 2021 YTD GBV YTD GBV in 2022 is 100% higher than 2021 posting SAR 6.8 billion 2022 vs. SAR 3.4 billion in YTD 2021 due to the resurgence of travel demand.
Revenue Revenue increased by 90% in 2022 at SAR 1.6 billion vs. SAR 841 million in 2021 as a result of healthy margins and increased GBV.
Gross Profit GP increased by 49% in 2022 at SAR 625 million vs. SAR 419 million in 2021
Net Loss after Zakat The company generated a net loss after zakat (before non-controlling interest) of SAR 77 million in 2022 as compared to net loss after zakat (before non-controlling interest) of SAR 302 million during the previous year.
Remarks/other information: Certain comparative figures are reclassified to conform to current year classification.
Other information:
1. The revenue for the current quarter is SAR 565 million as compared to SAR 369 million during the same quarter of previous year showing an increase of 53%.
2. The gross profit for the current quarter is SAR 250 million as compared to SAR 186 million during the same quarter of previous year with an increase of 34 %. The gross profit for the current period is SAR 626 million as compared to SAR 419 million during the same period of previous year with an increase of 49%.
3. The operating profit for the current quarter is SAR 30 million as compared to the operating loss of SAR 61 million for the same quarter of previous year showing an improvement of 149 %.The operating loss for the current period is SAR 69 million as compared to SAR 245 million during the same period of previous year with an improvement of 72%.
4. The net profit after zakat and tax before non controlling interest for the current quarter is SAR 54 million as compared to net loss of SAR 72 million for the same quarter of previous year showing an improvement of 175%. The net profit after non controlling interest for the current quarter is SAR 53 million as compared to net loss of SAR 72 million for the same quarter of previous year with an improvement of 174 %. The net loss after zakat and tax before non controlling interest for the current period is SAR 77 million as compared to net loss of SAR 302 million for the same period of previous year showing an improvement of 75%. The net loss after non controlling interest for the current period is SAR 79 million as compared to net loss of SAR 301 million for the same period of previous year with an improvement of 74%.
5. The total comprehensive profit for the current quarter before non controlling interest is SAR 79 million as compared to total comprehensive loss of SAR 67 million for the same quarter of previous year increased by 218 %. The total comprehensive profit after non controlling interest for the current quarter is SAR 78 million as compared to total comprehensive loss of SAR 67 million for the same quarter of previous year showing an increase of 216 %. The total comprehensive loss for the current period before non controlling interest is SAR 166 million as compared to total comprehensive loss of SAR 294 million for the same period of previous year improved by 44%. The total comprehensive loss after non controlling interest for the current period is SAR 168 million as compared to total comprehensive loss of SAR 292 million for the same period of previous year showing an improvement of 42 %.
6. Earnings per share for the current quarter is SR 0.18 as compared to loss per share of SR -0.25 for the same quarter of previous year. Loss per share for the current period is SR -0.27 as compared to loss per share of SR -1.02 for the same period of previous year.
7. The shareholders equity (without non controlling interest) as at the end of the current quarter is SAR 5,347 million as compared to SAR 5,589 million in the same quarter of previous year (without minority interest) decreased by 4%.
8. The Company has adjusted its opening retained earnings for an amount of SR 37.4 million during the current quarter and nine months period ended 30 September 2021. Refer to note 21 of the financial statements for details. Type of audit opinion: Emphasis of Matter
For more information and commentary, please click here.
