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

Thank you for standing by, and welcome to the Qatar Cinema and Film Distribution Co. results call. Please note that today's call is being recorded. I would like to hand over to [ Fibian Macquarie ] from QNBFS to begin the call. [ Fibian ], over to you.

Thank you, Paulie. Good afternoon to you all, and welcome to Qatar Cinema and Film Distribution's 4Q and FY 2023 Earnings Conference Call. My name is [ Fibian ] from QNB Financial Services. On today's call, we have 3 members of Qatar Cinema management team. We've got Abdulrahman Najdi, who is the General Manager; we've got Gamal Eldin Elbanna, the Finance Manager; Walaa El-Sayed, the IR Officer. And as usual, they will go over the performance and we'll have a Q&A session afterwards. I will now turn over the call to Gamal to begin. Over to you, sir. Please go ahead.

Thank you. Good afternoon for all. We are believed and honor on behalf of Qatar Cinema management we welcome you and we'll present to you the annual reports, which include a brief presentation of the key performance indicators and financial results during the year 2023. The company relies on severe sources for revenue generation to avoid the risk of reliance on income from a single source to ensure continuity and sustainability in its operations. Revenue come from the following 4 sources: first, the main factor of operating and managing cinemas. The company operates 4 cinemas today which are in the commercial complexes, in addition to one distinctive cinema in Cultural Village, Katara [indiscernible] in the first quarter of the previous year. Cinema revenues account for 30% of the total revenue. The company also achieved a 59% increase in operational performance for its cinemas during 2023 compared to the same period in 2022, attributed to the additional of new cinemas. Second, real estate sectors. The company owns a group of distinctive real estate assets some leased to Qatar Airways Railways and other leased to other parties, really rental income driven the large share at 63% of the total revenue. Third, investment portfolio in the stock markets, the company holds a diversified security portfolio in Qatar Stock Exchange, which is [ liquid ] and enable the company to seize great opportunity if in need of any investment liquidity. Dividend distribution revenue in 2023 accounted for 66% of the total revenue. Fourth, these are [ division ] revenues other than those mentioned above, contributing 1% of the total revenue. General profit for the financial year ended on December 31, 2023, amounting to QAR 4.381277 million compared to QAR 2.776872 million for the same period of the previous year. The net profit for the year 2023 increased [indiscernible] to 58% compared to year 2022, attributed to increase in sale revenue and the decrease in the general and administrative expenses. The company investment amounted to approximately QAR 104 million. Qatar [ Cinema ] distributed between 30% for liquidity investment and 70% for the real estate investment. [ Investing ] activity accounted for 96% of the total revenue. The company [indiscernible] its assets through liquidity and other liabilities. The company's liquidity increased by approximately QAR 5 million by the end of December 2023, a growth of around 28% compared to the end of December 2022, with a cash balance of approximately QAR 23 million by the end of December 2023. Based on the finance results achieved for this year, the Board of Directors believe to submit within the agenda of the company's Annual General Meeting a recommendation to distribute a cash dividend at the rate of 7%, that means QAR 0.07 per share. The company [indiscernible] work is currently underway to add a new activity [ addition ] from the current one to open a new revenue channels, diversified source of income and reduce the risk of relying on investment activities. Details will be disclosed following the receipt of the official approval. The Board of Directors will present approval to [indiscernible] regarding rehabilitation of the Gulf Cinema building, the approval include adding real estate investments in the containment sector with [indiscernible], the sustaining of the building in accordance with the vision of the [indiscernible] to preserve the building due to its historical culture and social significance as well as it's classification of Qatar heritage, we will inform you of any update later. Thank you and we are ready for questions.

[Operator Instructions] As there are no questions at this time. I would like to thank our speakers for today's presentation, and thank you all for joining us. This now concludes today's conference call. You may now disconnect.