(The Group’s Comments) Salam’s Net Loss Turns Profit of QAR 8.53 Million for the First Half of 2019

August 06, 2019

Profits: Salam International Investment Limited’s profits amounted to about QAR 8.5 million for the first half of 2019, compared to a loss of about QAR 12.7 million for the same period last year, while its earnings per share stood at QAR 0.007 versus a loss per share of about QAR 0.011 for the corresponding period of 2018. As for the second quarter, the company posted a profit of QR 2.9 million, compared to a loss of QAR 4.5 million for the corresponding quarter of 2018. This improvement is due to the increase of QAR 33.3 million in other income, in addition to the decrease in employee wages expenses by about 18 million.

Revenues: operating revenues decreased by 12.1% to QAR 164 million as a result of the decline in the technology sector by about QAR 147 million, and luxury products revenues by about QAR 45 million, and real estate sector by QAR 22 million.

Operating Costs: with revenues declining, operating costs decreased by about 10% to QAR 932 million, compared to QAR 1043 million for the same period of 2018. Revenue declined more than the decline in costs due to the gross profit, which dropped from QAR 310.7 million to QAR 257.0 million.

Other Income: recorded about QAR 48.9 million by end of the first half of 2019, compared to QAR 15.6 million for the same first half of the previous year, offsetting the implementation of standard 16, which led the company to extinguish the right to use assets by about QAR 27 million and raise financing costs by about QAR 10 million.