Dur Hospitality SJSC : Co. announces the interim financial results...

News31/07/2016

ELEMENTEXPLAINATION

Reasons of increase (decrease) for quarter compared with same quarter last yearDespite the increase in overall revenues, the decline in net income during the current quarter compared with the same quarter of previous year resulted from the decline in the revenues of some of the company properties that were affected by declined demand and spending on business visits and events. In addition to a decline in the income of investments in equity accounted investees after consolidating the Financial Statements of Saudi Company for Hospitality Services (SCHS) with the Financial Statements of Dur Hospitality Co., as a result of the acquisition of 70% of (SCHS), as well as the decrease in other income. Moreover, an amount of SAR 2.4 million was added to the income statement within the same quarter of 2015 as profits resulted from determining the fair value of the acquisition of SCHS conducted at that quarter.

Reasons of increase (decrease) for period compared with same period last yearDespite the increase in overall revenues, the decline in net income during the current period compared with the same period of previous year resulted from the decline in the revenues of some of the company properties that were affected by declined demand and spending on business visits and events. In addition to a decline in the income of investments in equity accounted investees after consolidating the Financial Statements of Saudi Company for Hospitality Services (SCHS) with the Financial Statements of Dur Hospitality Co., as a result of the acquisition of 70% of (SCHS), as well as the increase in the General and Administrative expenses resulted from the expansion of the Company business, and the decrease in other income. Moreover, an amount of SAR 2.4 million was added to the income statement within the current period of 2015 as profits resulted from determining the fair value of the acquisition of SCHS conducted at that period.

Reasons of increase (decrease) for quarter compared with previous quarterThe decline in net income during the current quarter compared with the previous quarter resulted from the decline in the revenues of number of the Company properties due to seasonality reasons.

Reclassifications in quarterly financial resultsCertain comparative figures have been reclassified to conform to the presentation in the current period. It is worth mentioning that the Financial Statements of Saudi Company for Hospitality Services (SCHS) have been consolidated with the Financial Statements of Dur Hospitality Co., as a result of the acquisition of 70% of (SCHS) by Dur.

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