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

Hello, and welcome to the Qatar Cinema Conference Call. Please note that this call is being recorded. I would now like to hand the call over to our moderator, Gamal Eldin Elbanna. Please go ahead.

Thank you. Ladies and gentlemen, good afternoon. It is my pleasure on behalf of the Qatar Cinema management to present to you the annual report, which includes a brief overview of the key performance indicators and financial results for the year 2024. The company relied on multiple revenue sources to mitigate the risks associated with the dependence on a single income stream, ensuring continuity and sustainability in its operations. The company achieved total revenue of QAR 22,976,092, reflecting an 8% growth compared to 2023. This growth highlights the company's success in expanding its customer base and enhancing its marketing strategies. The revenue are derived from the following four sources: that is operation and management of cinemas. The company operates four cinemas, three of which are located in lively commercial malls in addition to a distinguished cinema in Katara Cultural District. Revenue from the cinema operation account for 33% of the total revenue. The company also achieved a 19% increase in the operational performance of its cinema in 2024 compared to the same period in 2023 attributed to the addition of new cinema screens. Second, real estate sector. The company-owned portfolio of railway -- real estate assets, some of which are leased to Qatar railways, while other are related to various entities. Rental revenue constitute the largest share accounting of 55% of the total revenue. However, rental income declined by approximately 4% compared to the previous year due to the weak performance of the real estate market during this period. Third, investment portfolio in the stock market. The company maintained a diversified and liquid security portfolio in the Qatar Stock Exchange, providing financial flexibility to seek great investment opportunities, when liquidity is needed. Dividend income in 2024 accounted for 8% of the total revenue. For other revenues -- additional revenues generated beyond the three -- four mentioned sources, distributed 4% of the total revenues derived from various other income streams. Net profit for the year ended December 31, 2024 was QAR 4,177,342 compared to QAR 4,381,277 for the same period in the previous year. Net profit for 2024 decreased by approximately 5% compared to the 2023, due to the decrease in the rental income from the real estate properties. The company total investment amount to approximately QAR 102 million divided between 35% for equity investment and 69% for the real estate investment. Investment activity accounted for 63% of the total revenues. The company has been utilized on growing for the financing assets and the company currently financed assets through equity and other liabilities. The company's liquidity increased by approximately QAR 5.1 million at the end of December 2024, representing an increase of 22% compared to the end of December 2023. The cash and cash equivalent at the end of December 2024 was approximately QAR 28 million, which enhance the strength of the company financial position and sustain its operation in the long term. Based on the financial results achieved this year, the Board of Directors' believed to present as a part of the indoor film assembly recommendation to distribute a cash dividend of 7% equivalent of QAR 0.07 per share in support of our valuable shareholder. The company has remained committed to the corporate social responsibility, accounting the -- an amount of [ QAR 4,454 ] has been allocated from the profit of the year to contribute to the social and in both activities that bought funds. This rise is related to 5% of the net profit of the year. The company adheres to the highest standard of governance to ensure transparency and accountability and enhance investor confidence. This remains -- has been [indiscernible] through policy update to address economic risk and market challenge in addition to improve internal control and audit mechanism to ensure full compliance with the local and international regulation. Future [indiscernible] for the company. The company aims to [indiscernible] continue the growth and maintain a competitive advantage in the long term through well-established strategies that guarantee the achievement of these objectives. The company has initiated an infrastructure enhancement project, integrating technology across all its activities to improve internal operation and provide a smoother and more enhanced customer experience. A memorandum of understanding was signed with Qatar Museums to [ revitalize cultural exhibition project, mega ] cinema building and offers a Museum and culture exhibition, [indiscernible] aligned with the region and it's signed [indiscernible] The collaboration also aims to promote tourism and culture, highlight the historical significance of the Cinema Complex and host regular and annual events, benefiting both parties while boosting the project's commercial revenue. We will keep you updated on the latest development once all details are finalized and the necessary official approval are obtained. The company is committed to reopening of cinema and introducing a new activity to increase revenue, enhance the company income and support the financial position. Finally, we extend our deep gratitude and appreciation to our esteemed shareholders for their continued support and trust, and we are confident that, with them -- we'll continue achieving greater success in the near future. Thank you for your valuable participation, and we are ready for questions.

[Operator Instructions] Mr. Elbanna, it looks like we don't have any questions as of the moment.

Okay. If there are no questions, we can wrap this up. And I'd like to thank management for giving us an update on the results, and we'll pick this up again next quarter. Thank you.

Thank you. Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.