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

Hello, everyone, and welcome to the Qatar Cinema Results Call. I would like to advise all participants that this call is being recorded. I'd now like to welcome Roy from QNB to begin the conference. Please go ahead.

Thanks, Janine. Hello, everyone. This is Roy Thomas from QNB Financial Services. I want to welcome everyone to Qatar Cinema and Film Distribution Co.'s Third Quarter and 9 Months 2024 Financial Results Conference Call. On this call from Qatar Cinema and Film Distribution Co., we have Abdulrahman Najdi, the General Manager; Gamal Eldin Elbanna, Finance Manager; and Walaa El-Sayed, 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.

Thank you, Mr. Thomas. Ladies and gentlemen, good afternoon. On behalf of Qatar Cinema management, we are pleased to welcome you. Today, we present the third quarter financial statement for the year 2024, which highlights key performance indicators and financial results. The company depends on multi-revenue sources to avoid risk of relying on a single income source. The company generated revenue from 4 sources, that is, operating and managing cinema. The main activity specializes in operating and managing cinemas. The company operates 4 cinemas, 3 in commercial complex and 1 in the cultural district of Qatar. Cinema revenue accounted for 34% of the total revenue in 2024. Operational performance for the cinema improved by 22% compared to the same period in 2023. Despite this, the financial statement indicated operational losses of QAR 252,327 for the cinema compared to a profit of QAR 190,409 during the same period last year. This decline is attributed to cinema dependent on Indian film as production featuring popular Indian stars were not screened during this period, along with an increase in government fees for recently opened cinemas. Second, real estate sector. The company owns a portfolio of unique real estate assets which is sub-leased to Qatar Railways and other different tenants. Rental income constitutes the majority share, accounting for 51% of the total revenues. There has been no significant change in the real estate investment revenue compared to the same period last year. Real estate revenue had not increased due to the decline in real estate rate for certain locations. Despite this situation, the company continues to achieve sustainable revenue from its real estate leasing activities, which support its financial performance. Third, investment portfolio in the stock market. The company maintains a diverse security portfolio on the Qatar Stock Exchange, which provides liquidity for timely investment action. In 2024, dividend distribution revenues represented 11% of the total revenue. The financial statement indicated roughly 35% increase in the dividend revenue due to a profit received from certain companies in the first half of 2024. Fourth, other revenues. Other revenues, other miscellaneous revenue, account for 4% of the total revenues. The third quarter financial statement for 2024 shows net profit of QAR 4,162,030 compared with QAR 4,053,958 in the same period last year. The increase in the net profit by 3% is attributed to the increase in dividend income. The company has invested around QAR 100 million distributed between 30% for stock market investment and 70% for the real estate sector. Investment activity contributed 62% to the total revenue, the decline in investment value due to depreciation of [ global FX ]. The company has paid all its debt in the second half of the year 2022. The company currently funds its assets through equity and other liabilities. The company's liquidity at the end of the third quarter of 2024 increased by approximately QAR 5 million, a rise of about 25% compared to the same period in 2023. In Q3 2024 reached approximately QAR 26 million. The commentary on the future period. The company will start outdoor advertising activities by operating a 3D advertising during the remaining period of this year. This [indiscernible] activity in this sector. Based on the signing of the memorandum of understanding with the hotel [indiscernible] authority, consultation are currently underway with the technical management of Qatar Rail to obtain the official approval to start the project for the implementation of the cinema. Thank you for your valuable participation, and we are ready for questions.

[Operator Instructions] There are no questions. I will now turn the call over back to Roy for final closing comments.

If there are no questions, we'd like to thank Gamal Eldin Elbanna for the results update, and we look forward to speaking to you all for the final quarter results. Thank you.

Thank you.

Thank you, everyone. That concludes today's conference call. You may now disconnect.