(The Group’s Comments) UDC Net Profit Drops to QR 170.6 Million in Q1 2019

(Excluding Minority Interests)

April 25, 2019

Profits: United Development Company’s (UDC) profits fell by 20.5% to QR 170.6 million in the first quarter of 2019 (excluding minority interests), compared to QR 214.5 million for the same quarter of 2018, while its earnings per share amounted to QR 0.48 versus QR 0.61.

Revenues: UDC’s revenues remained stable at QR 530.1 million by the end of the first quarter of 2019, compared to QR 528.8 million in the same quarter of the previous year. Revenue costs on the other hand increased by QR 29.2 million or 12%, resulting in a decrease in profit margins. The gross profit (revenues - costs) amounted to QR 261.8 million in this past quarter, versus QR289.5 million in the same quarter of 2018. Other revenues also decreased from QR 37.6 million to QR 14.3 million for the corresponding period of 2018. It should be noted that the first quarter results of 2018 included non-recurring profits of QR 11 million (from the sale of financial investments), the previous factors led to a decline in profits despite the decrease of administrative and general expenses by about QR 16 million.

Comprehensive Income: UDC does not have any investments that appeared in the statement of the comprehensive income for the first quarter compared to a loss of about QR 502,000 for the same period last year.