Qatar Cinema and Film Distribution Co. (Q.P.S.C) (QCFS.QA) Earnings Call Transcript & Summary

Hello, and welcome to Qatar Cinema. Please note that this call is being recorded. [Operator Instructions] I would like to hand the call over now to our QNB moderator. Please go ahead.

Hello, everyone, and [Foreign Language] to you all. This is Dana Al Sowaidi from QNB Financial Services. I would like to welcome everyone to Qatar Cinema and Film Distribution Company's Third Quarter 2025 Financial Results Conference Call. On this call from management, we have Abdulrahman Najdi, General Manager; Gamal Eldin Elbanna, Finance Manager; and Walaa Elsayed, IR Officer. We will conduct this conference call with management, first reviewing the company's results followed by a Q&A session. I will turn the call now over to Abdulrahman. Please go ahead.

Thank you, [Foreign Language] Good afternoon, everyone. Thank you for joining today, the representation of Qatar Cinema Company's financial results for the 3rd quarter. We will provide a brief overview of our financial performance, highlight key operational achievement and discuss important factors affecting our business. The company achieved total revenue of QAR 22,794,888 for the period ended 30 September 2025, making an increase of approximately 28% compared to the same period in 2024. This increase is mainly due to the impact of the amendment to the Qatar Cinema lease agreement. The main sources of revenue are as follows: one, operation and management of cinemas. The company operates 4 cinemas, they are in busy shopping malls and one is a top cinema in Katara Cultural Village. Cinema operation contributed to 24% of the company's total revenue. Cinema revenue amounted to QAR 5,558,224, reflecting a 3% decrease compared to the same period last year despite the significant expansion of cinema hold in Qatar, which has affected market share and revenue. Two, real estate sector. The company owns valuable [ properties ], some are rented to Qatar Airways, while others are rented to different tenants. Rental income constitute 42% of the total revenue. The decline in real estate is insignificant compared to the same period last year. Three, investment portfolio in the stock market. The company maintained a diversified and liquid security portfolio listed on the Qatar Stock Exchange including financial flexibility and enabling the company to capitalize on timely investment opportunity when needed. Revenue from this portfolio totaled QAR 1,495,919, accounting for 7% of total income, a decrease of 6%. This decline is mainly due to the reduced dividend income as -- company's distributed interim dividend. Fourth, other revenues. Additional revenue streams beyond the 3 prime resources contributed 27% of total income generated from various miscellaneous sources. As mentioned above, this increase is mainly due to the impact of the amendment to the Qatar Cinema lease agreement. Despite a slight decline in some revenue compared to the same period last year, the company has continued to maintain strong performance in its other operating activities. The company achieved a net profit of QAR 9,237,248 compared to a net profit QAR 4,162,030 for the same period of the previous year, recording an increase of approximately 123% compared to the same period in 2024. This increase is mainly due to the impact of the amendment to the Qatar cinema lease agreement. The company's total investment amounted to approximately QAR 102 million divided between 33% for liquidity investment and 67% for real estate investment. Investment activity accounted for 48% of the total revenue. The company does not depend much on loan to pay for its asset and company currently finance its assets through equity and other liabilities. The cash balance as in Q3 2025 reached approximately QAR 31 million. The company continues to maintain strong finance position and long-term operation and sustainability. Earnings per share at the end of Q3 2025 amounted to QAR 0.148 compared to QAR 0.066 for the same period in 2024. Company future plan. As a part of the company effort to restore the Gulf Cinema building, Memorandum of Understanding was signed with Qatar Museums to explore possible cooperation on the project. The company management is still in regular contact with the concerned authority to find suitable solutions for the acquisition of the cinema land, ensuring the rail project needs are met while protecting shareholder right. Amid fast-changing market condition and growing competition in the cinema sector, the company noticed a drop in revenue from this segment. This decline is mainly due to the large increase in the number of cinemas in shopping malls, which have reduced both market shares and income. To strengthen financial stability and control costs, the company has started discussion with the property owners to review the partnership agreement for cinema operation. Thank you for joining us today on this conference call, and we are ready for questions.

[Operator Instructions] At this time, we did not receive any questions. I would like to turn the call back over to Dana for the closing remarks. Thank you.

If there are no questions, we would like to thank the company's management for the results update, and we look forward to speaking to you all for the fourth quarter results.

Thank you.

Thank you, everyone, for joining. That concludes our call for today. You may now all disconnect. Have a nice day ahead.