(The Group’s Comments) Qatar Cinema Net Profit Up 8% to QR 8.45 Million in 2018

Ø  Profits: Qatar Cinema & Film Distribution Company net profit amounted to QR 8.46 million by the end of 2018, an increase of 8.20%, compared to QR 7.82 million for the same period of 2017, while the company’s earnings per share reached QR 1.35 versus QR 1.24 for the previous year. As for the fourth quarter profits, they amounted to QR 2.15 million, compared to QR 310,000 for the corresponding period of 2017.

Ø  Comprehensive income: Qatar Cinema’s total comprehensive income stood at about QR18.46 million in 2018. The statement of comprehensive income shows that the company made valuation profits of QR 10 million by the end of 2018, versus a valuation loss of QR4.72 million for 2017.

Ø  Revenues from the activity of the cinema: Decreased by 23.5% to QR 6.61 million in 2018, compared to QR 8.64 million in 2017. The company recorded an operating loss of about QR 1.62 million, compared to QR 1.10 million in operating loss for 2017, and the cost of revenue to revenue ratio reached about 124% compared to 113% in 2017.

Ø  Net income of property leases: Amounted to about QR 17.56 million in 2018, compared to QR 17.15 million for the previous year. These revenues represent the main source of revenue as the company sustains a loss at the activity of films.

Ø  Dividend distribution: The Board of Directors recommended the distribution of a cash dividend of 15% of the nominal value of the share (8.34% dividend yield), i.e. QR 1.50 per share, noting that the dividend distribution ratio was 10% in 2017.

Ø  Market ratios: The stock is currently traded at a PE multiple of 13.33 times and a book value multiple of 0.78 times.