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 Quarter 3 2021 Results 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.

Hello, everyone. This is Roy Thomas from QNB Financial Services. I want to welcome everyone to Qatar Cinema and Film Distribution Company's third quarter 2021 financial results conference call. On this call, we have from Qatar Cinema, Abdul Rahman Najdi, who is the General Manager; Gamal Eldin Elbanna, who is the Finance Manager; and Walaa Elsayed, who's 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 now over to Gamal Eldin Elbanna. Go ahead, Gamal.

Ladies and gentlemen, good afternoon. We would like to present a warm welcome to our audience. On behalf of Qatar Cinema management, we'll present to you the financial report, which includes a brief presentation of the most important performance indicators and financial results during the period from January 30 to September 30, 2021. The company relies on 4 cores to generate revenues. One, the main activities realized in operating and managing cinema. The company has several cinemas and crowded commercial complexes in addition to a new cinema, [indiscernible] of Qatar. Cinema organic revenue at least 8% of the total revenues. So despite of difficulty felt by the real estate sector, the company is still able to achieve revenue from real estate leading activity, which supports the financial performance during this period. Leading revenue remains 83% of the total revenues, which delivered the largest share of the company income. The investment of stock market with the other revenue resulting from other profit distribution. The division revenue came as a third grade with the 7% of the total revenue. Larger income in the last [indiscernible] came with only 2%. Concerning the company's financial statement for the 9-month period ended September 30, 2021, the net decreased by 60% [indiscernible] compared to the same period in the year 2020, achieved QAR 1.9 million in comparison to the nonprofit QAR 7.8 million revenue for the same beliefs of the previous year. The earnings this year amounted to QAR 0.03 as of September 30, 2021, and earnings per share QAR 0.06 for the same period in the year 2020. General profit decreased because of the following factors: One, the company suffered from a decrease in the cinematic operation revenue by 25% during the period compared to the same period in the previous year. We have because of closing of the cinema and open with a capacity of 20 to 30 for the [indiscernible] so that to prevent the spread of corona in the mix. So the rental income revenue [indiscernible] income, we decreased by 17% approximately in the comparable with the same period in the year 2020. Decrease in leasing revenue recall of reducing in contract. Also, the sales of the [ Novo Star ] operation, the company adopting the new financial Standard #16 pertain to the Qatar Cinema lease contract another [indiscernible]. The total invest amount to QAR 116 million distributed between 32 investment for other for sale equity investments and 68 for the sales for real estate investment. The liquidity volume of the company decreased by QAR 7.5 million, about 32% 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 revenue decrease, as mentioned above, the moment of 10% price dividend for the year 2020 and [indiscernible] 40 loan for loss. In addition to the long-term investment we presented in Qatar Cinema business, which will generate more future revenue, will help to increase the company's revenues. Since we are about to launch our most luxury cinema in Qatar, Qatar Cinema is all set to sign an investment review within cinema to project and even renovate our current cinema to increase our market share in the cinema industry. Thank you, and we are ready to questions.

[Operator Instructions] At this time, we have not received any telephone questions.

All right. If there are no 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 final quarter results.

This will conclude today's conference call. Thank you all for your participation. You may now disconnect.