Ground Services Company Net Profit Amounts to SAR 59.8 Mln
The Saudi Ground Services Company (Ground Services) net profit amounted to SAR 59.8 mln in the third quarter of this year, compared to net losses of SAR 50.8 mln in the same quarter of last year.
The company said in a statement to Saudi Tadawul on Sunday that this increase in profits is due to the increase in revenues by 91.6 million riyals, or 17%, compared to the same quarter of the previous year. This increase in revenues resulted from the increase in air traffic.
The Ground Services Company managed to achieve the profits despite an increase in the cost of revenues by 16.1 million riyals, or 3%, compared to the same quarter of the previous year.
This resulted from an increase in operational costs due to increase in the number of flights. The company achieved an increase in total profit by 75.5 million riyals, or 172%, compared to the same quarter during previous year.
The profit is attributed to the company’s initiatives that were implemented to raise productivity and rationalize expenses.
During the first nine months of the current year, the company achieved a net profit of 149.9 million riyals, an increase of 286.6 million riyals, or 210%, compared to the same period of the previous year, in which the company recorded losses of 136.7 million riyals.
Reason Behind Profits
The main reason for achieving profits was an increase in revenues of 361.5 million riyals, or 24%, compared to the same period of the previous year, resulting from the increase in air traffic.
The company also recorded an increase in total profit by 185.5 million riyals, or 136%, compared to the same period of the previous year, despite an increase in the cost of revenues by 176 million riyals, or 13%, compared to the similar period of the previous year.
It also indicated an increase in investment profits in the shares of investee companies through equity by an amount of 20.1 million riyals, in addition to income from term deposits amounting to 31.3 million riyals.
Administrative expenses also decreased by 18.7 million riyals and the zakat allocation by 55.9 million riyals compared to the same period during the previous year.