Wednesday 19 December 2018

Bahrain Cinema Company posts $92m profit

MANAMA, February 26, 2018

Bahrain Cinema Company, market leaders in the entertainment industry in the kingdom, also known as Cineco, has reported a record net profit of BD34.7 million ($91.7 million) for the financial year ended December 31, 2017 compared to BD4.87 million (12.8 million) the year before.

Announcing the results, Cineco said the remarkable increase in net profit was due to the sale of 50 per cent of the assets of City Centre Cinema location for the total amount of BD19.5 million and also the resultant fair value increase due to revaluation of remaining 50 per cent of the assets, said the statement from Cineco.

This was done as per the joint venture agreement announced in September 2016, which was later approved by the shareholders, it added.
Cineco said its operating revenue for the period fell to BD14.84 million ($39.2 million) from BD22.88 million ($60.4 million) the year before, a decrease of 35.14 per cent

The reason for the decline in the operating income was that from July 1, 2017, the income and expenses of Cineco 20, City Centre were accounted in a separate associate company. Therefore, in its financial statement, Cineco recorded only its share of net profit for the period, the company said in a statement.

Cineco has also registered a net loss of BD2.62 million ($6.9 million) for the fourth quarter as against the net profit of BD849,176 ($2.2 million) reported in the corresponding period of 2016.

This decline is purely due to the impairment of investment amounting to BD2.8 million ($7.4 million) in Qatar Bahrain International Cinema and Al Murjan Restaurant in Qatar in the fourth quarter of the financial year, 2017, said the statement.

The board decided to impair due to geopolitical instability prevailing between Qatar and other GCC countries, it stated.

The earnings per share of the year ended December 31, 2017 stood at 438 fils as against the EPS of 62 fils registered in the same period of the previous year.  

Since its establishment in Bahrain in 1968, Cineco has pioneered many firsts, establishing benchmarks in Bahrain’s entertainment industry. Today it owns and operates a total of 49 cinema screens in Bahrain and 47 screens in Qatar.

Impressed with the solid results for 2017, Cineco's board of directors has proposed a cash dividend of 50 per cent of the paid up capital i.e., 50 fils per share to the shareholders, subject to obtaining approval from shareholders and Regulatory authorities.  

Dr Esam Abdulla Fakhro, the chairman of the board, said: "Over the years, we have been at the forefront of the entertainment industry in Bahrain through our provision of constantly evolving, pioneering technology and exemplary services to our customers."

"We have created countless memorable experiences for moviegoers, which in turn consolidate our leading position in the kingdom. And as our financial statements for the year ending December 31, 2017 highlight, we have impressively sustained that trend during the past year as well," noted Dr Fakhro.

"Now, using the extraordinary accomplishments of the previous year to further motivate ourselves, we look forward to expanding our efforts and to moving forward and outdoing ourselves in the interests of both our shareholders and loyalists," he added.

Cineco CEO Ahmed Rashed said: "The past year has been enormously prosperous for us in terms of the success we achieved through the numerous strategic business initiatives we executed that served to substantially augment the movie experience for our customers."

"In the same vein, this year, we aim to extensively improve ourselves through the myriad expansionist plans we have in place that will help us achieve unprecedentedly positive results, both on a financial and experiential scale," he added. - TradeArabia News Service

Tags: profit | Bahrain Cinema Company |

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