Lower rentals drive 11% H1'19 profit dip at Saudi Arabia's Arriyadh
Riyadh-based and Tadawul-listed real estate developer saw revenues decline by 14% compared to H1 2018
Net profit at Saudi Arabia's Arriyadh Development Company declined by 11% during the first six months of 2019, driven in part by lower rental incomes, the developer’s half-year financial results filed on Saudi bourse Tadawul have revealed.
According to the filing on 15 July, net profit after zakat and tax for the six-month period ending 30 June, 2019, stood at $23m (SAR92.88m), an 11% decline on H1 2018’s corresponding $27.9m (SAR104.4) figure.
Revenue for H1 2019 stood at $33.5m (SAR125.8m), a 14% dip on H1 2018, when the group generated $27.9m (SAR104.7m) in revenues.
In its bourse missive, the group cited “lower rental income” for its fall in year-on-year profitability.
Arriyadh Development builds, rents, and sells commercial and housing property in the kingdom.
Its latest financials mirrored its 2018 full-year results, filed on Tadawul in February 2019.
Profit after taxes and zakat at Arriyadh fell to $54.1m (SAR203m) in 2018, a single-digit decline compared to the $62.6m (SAR235m) in net profits reported for 2017.
Revenue fell by 9% year-on-year to $75.4m (SAR283m), despite the company claiming to have witnessed a “significant” hike in rental income during the last 12 months, as reported in its missive at the time.