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

Good day, and welcome to the Qatar Cinema Film Distribution Company. Today's conference is being recorded. At this time, I would like to turn the conference over to 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 Second Quarter 2022 Financial Results Conference Call. On this call from Qatar Cinema, we have Abdul Rahman Najdi, the General Manager; Gamal Eldin Elbanna, the Finance Manager; and Walaa Elsayed, the IR Officer. We will conduct this conference call with management first reviewing the company's results followed by Q&A. I will turn the call now over to Gamal Eldin. Go ahead, Gamal.

Thank you. Ladies and gentlemen, good afternoon. Gladly and honored and on behalf of Qatar Cinema [indiscernible], we welcome you in our annual report, which includes [indiscernible] of the most critical performance indicators and financial results for the 6 months and the [indiscernible] 2022. The company relies on the new generation process from Silversources to ensure continuity and sustainability in its operations. The COVID-19 pandemic [indiscernible] by the company has growth address success in the [indiscernible]. The company's total revenue for the dilution [indiscernible] compared to the QAR 8.2 million as for the same period of the previous year. The income was generated from growth from the following sources. Operation and [indiscernible]. The main activity of the company specializing operating income managing cinemas. The [indiscernible] are in the crowded commercial complexes and initiate Qatar as its operation tomorrow. Other results [indiscernible] 230% compared to the same period 2021. Other result, [indiscernible] amounted to 19% of the total ratio. And number two, real statement [indiscernible] better that considers the bond of the company. The company on a group of substantial real [indiscernible]. We will deliver the 3% in the total revenue, which means the largest share of the company [indiscernible] decrease [indiscernible] income by 9% from [indiscernible] 2020 due to the reduction in the right of this contract. Number three, investment in the stock market. [indiscernible] was following on the stock on Galata stockist market, which is a diverse and equitable portfolio I think the company is a finance gets good opportunities in case it needs an investment liquidity. Dividend income during 2022 amounted to 13% of the total revenue. Number four, other revenues. Other revenues consist of more revenue that [indiscernible] from the mentioned above. Share of the company income only 5% of the revenue. [indiscernible] 2022 increased by 22% compared to the year in 2021 as a result the company achieved about [indiscernible] profit margin of 19% compared to the 1.5 profit margin of 18% for the sales in the previous year. [indiscernible] sale amounted to go nearly 29 as of June 2022. Again, [indiscernible] for the same period 2021. The net [indiscernible] is affected the following quarter. Number one, a government as our direct of the COVID-19 pandemic in the next years. Number 2 are increase in recognized by doing account Standard #16 related to million contract [indiscernible] Qatar Cinema contract and some direct costs associated with Qatar Cinema [indiscernible] into H2. Number three, the decrease in rental income, which constitute the loss of the sale of the company's total revenue and the rate of our 9% results from reducing the value of this contract. Record investment amount of QAR 114 million are distributed 33% of the equity investment under anticipated reimbursement of real estate investment. Other results, the investment achieved 76% of the total revenue. The company liquidity decreased by 21% and amounted [indiscernible] by December 2021 which [indiscernible] 2021. The payment of the loan and the long-term investment that Qatar Cinema will get, which will emanate more future than [indiscernible] company. [indiscernible] Qatar Cinema will start tomorrow, 4th August 2022. This is the third quarter as we see it. [indiscernible] approve the 3 years of the company for the coming 5 years. Number 3, no impact of the Ukrainian war of the common activities. There is no direct or indirect between the company and the country of Russia and Ukraine. There is no immediate impact on the company due to lower [indiscernible] mentioned above. Thank you, and we are ready for questions.

[Operator Instructions] We will now take our first question from Soha Pervez from Al ran Investments.

This is [indiscernible] from Ran Investment. Apologies, I don't know this company that well. Just trying to understand how many cinemas and cinema seats did you have at the end of the second quarter? And how many -- and in terms of your growth plans, how many are expecting to have in the coming 12 to 18 months?

Welcome. Now by the end of the of the second quarter, we have 3 cinemas located in Lamar, Larrinaga and the Landmark. By tomorrow, we'll review cinemas in Qatar. This cinema contained 4 [indiscernible]. And we are the cinema and our grand third quarter on the second year will be cinema also [indiscernible] give you idea for the new cinema in Qatar we will talk tomorrow.

We have [indiscernible] cinema Qatar village to rehabilitate. And we believe it will be -- it's [indiscernible] cinema actually, and we believe it would be one of the best cinema in the region. Will [indiscernible] cinemas then.

So how many cinema seats do you have at the end of Q2? And how many will you have after -- so let's say, 12 months from now?

Yes, in the [indiscernible] before it was about 900 seats and now it has come to 200. But unfortunately, on the June, we closed the operation of Lamar cinema in [indiscernible]. And now at the moment, by tomorrow will be, we'll have about 70 in the whole cinema. It will be about 800-some, like that.

Right. And Landmark is closed permanently or temporarily?