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

Good day and welcome to the Qatar Cinema and Film Distribution Call Q2 2021 Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Roy Thomas. Please go ahead, sir.

Hello, everyone. This is Roy Thomas from QNB Financial Services. I want to welcome everyone to Qatar Cinema and Film Distribution Company's Q2 2021 Financial Results Conference Call. On this call, we have Abdul Rahman Najdi, the General Manager; Gamal Eldin Elbanna, Finance Manager; and Walaa Elsayed, the IR Officer. We will conduct this conference call with management first reviewing the company's results, followed by a Q&A. I will turn the call over now to Gamal. Go ahead, Gamal.

Okay. Ladies and gentlemen, good afternoon. We are indeed honored. And on behalf of Qatar Cinema Company management, we welcome you. And we're bringing to you the financial results, which include a brief presentation of the most important performance indicators and financial results during the period from 1st January to 30 June 2021. The company relies on the revenue generation for the second period versus [indiscernible] susceptibility and its iterations. Number 1, the main activity of the company, the operating [indiscernible] over the period. The company has several cinemas and they are largely are in crowded commercial complexes. In addition, they are unique cinema [indiscernible] with the associated distribution of [ Qatara ]. Cinema operating revenue achieved 7% of the total revenue. Second, a part of the digital process that [indiscernible] the company is still able to achieve revenues [indiscernible] during activities, which support the financial performance [indiscernible]. Leasing revenue represents 81% of the total revenue, which represents the largest share of the company income. Thirdly, the investment in the stock market will give us other revenue resulting from the other profit distribution. The [indiscernible] review came in the second lot with 11% from the total revenue. Finally, the other income is a lot less than -- is only 1% of the revenue. Concerning the company financial statement for the 6-month period ended 30 June 2021, the net profit decreased by 45% approximately compared to the same period in the year 2020. [Indiscernible] by QAR 5 million in comparison to the net profit of QAR 7 million for the same period of the previous year. Revenue this year amounted to QAR [indiscernible] 30 June 2021 [indiscernible] for the same period in the year 2020. The net profit decreased because of the following factors. Number 1, the company suffered from the decrease in the cinematic operations revenue by 58% during the period compared to the same period in the previous year. This happened because of the closing of cinema and opening the capacity of 20% to 30% for activated customer-only. So that is [indiscernible] of corona outbreak. Secondly, the rental income revenue result is a bigger part of the income, which decreased by 70% that was directly comparable to the same period in the year 2020. Decrease is in revenue because of the renewed leasing contracts. Thirdly, also the [indiscernible] in term of [ salary operation ] the company adopted the new financing [indiscernible] Qatar Cinema [indiscernible] and other miscellaneous incidents included. The total investment amount to approximately QAR 114 million distributed between 30% of available for sale [indiscernible] investment and 70% for real estate investment. The liquidity volume of the company decreased QAR 8.7 million, that is about 37%, compared to the end of December 2020. And the cash in hand at the end of December 2020 amounted to QAR 23.4 million. This is due to the revenue decrease, as mentioned above, and the payment of 10% of cash dividends for the year 2020 and settlement of [indiscernible] cash balance. In addition to the long-term investment made in Qatar Cinema, which will generate more retail revenue, will help mutually the company [ even more ]. Finally the company [indiscernible] operation activity by developing its cinemas on the international standards, and we are going to other Qatar Cinema to update. Thank you now. And we ready for questions.

[Operator Instructions] We have no questions at this time, sir. I'd like to turn the call back over to you for any closing remarks. Thank you. Sir, we have no questions. If you'd like to add any closing remarks?

Okay. If there are no further questions, we would like to thank Qatar Cinema and Film Distribution Company's management for the results update and look forward to speaking to you all for the next quarter results. Thanks.

Thank you. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation today. You may now disconnect.