(The Group's Comments) Alijarah Net Profit Climbs to QR 4.97 Million in Q1 2019

April 18, 2019

Alijarah Holding posted a profit in the first quarter of 2019 of about QR 4.98 million, compared to QR 1.87 million for the same period last year, an increase of 166%, while its earnings per share reached QR 0.10 in the first quarter of this year, versus QR 0.04 for the corresponding period of 2018. It should be noted that the improvement in profits was the result of lower expenses not higher revenues.

Alijarah’s gross revenues fell by about 16% to QR 34.79 million in the previous quarter, compared to QR 41.35 million for the same period in 2018. Revenues from taxis decreased by QR 5.88 million and real estate revenues dropped by QR 4.74 million or 33%. On the other hand, the company made revenues of QR 1.17 million from warehouse rentals and QR 438,000 from the company’s driving school. Data from these last two items was not available in the corresponding period of 2018.

Revenues from investment activities increased by 10% to reach QR 9.5 million, compared to QR8.6 million as a result of the improvement of the profits of the valuation of financial investments by about QR 708,000 compared to a loss of about QR 2.9 million for the same period of 2018, which offset the QR 2.7 million decline in dividends.

The total expenses of the company decreased by QR 10.2 million or 23% during the first quarter of 2019 to settle at QR 33.76 million, compared to QR 43.96 million for the same period of 2018. The decrease in expenses is the direct cause of the company's high profits.

Alijarah’s accumulated losses decreased by the end of the first quarter to QR 187.6 million compared to QR 192.2 million by the end of 2018. The accumulated losses represent about 27% of shareholders' equity and 38% of the company's capital.