Qatar Cinema and Film Distribution Co. (Q.P.S.C) (QCFS) Q4 FY2025 Earnings Call Transcript & Summary

Hello, and welcome to Qatar Cinema and Film Distribution. Please note that this call is being recorded. [Operator Instructions] I'd like to hand the call over to our moderator for today, Dana Al Sowaidi, please go ahead. Thank you.

Hello, everyone, and [Foreign Language] to you all. This is Dana Al Sowaidi from QNB Financial Services. I would like to welcome everyone to Qatar Cinema Film and Distribution's Fourth Quarter 2025 Financial Results Conference Call. On this call from management, we have Abdulrahman Najdi General Manager; Gamal Eldin Elbanna, Finance Manager; and Walaa Sayed, IR Officer. We will conduct this conference call with the management first reviewing the company's results followed by a Q&A session. I will now turn the call over to Gamal. Please go ahead.

Thank you, Dana. Good afternoon, everyone. It is my pleasure and honor, on behalf of the management of Qatar Cinema company to present the annual report to you, which include a brief overview of the key performance indicators and financial results for the year 2025, and discuss important factors affected our business. The company relies on multiple revenue trimmed to avoid the risks associated with depending on a single source of income, thereby ensuring continued to sustainability in its operations. The company achieved total revenue of QAR 28,207,375, reflecting a growth rate of 23% compared to 2024. This increase is mainly because of the impact of amendment of Qatar Cinema lease agreements. Accordingly, the company's revenue are distributed across the following 4 sources: one operation and management of cinemas. The company owns 4 cinemas, 3 of which are located in popular shopping complex, in addition to 1 high-quality cinema located in the Katara Cultural Village. Cinema revenue represented 26% of the total revenue. However, the company's cinema had a 3% drop in performance in 2025, compared to the same [ revenue ] in 2024. Due to the significant range in the number of cinemas within the shopping complex, which affected market shares are revenue. Number two, real estate sectors. The company-owned portfolio of prime real estate assets, some leased to Qatar Airways and others to the different tenants. Rent income constitutes a larger portion of revenue, accounting for 46% of total revenue. Revenue from royalty rented increased by 2% compared to the previous year, mainly due to the leasing several [indiscernible]. Three, investment portfolio in security market. The company has a diversified liquid security portfolio on Qatar Stock Exchange, enabling to seize quick investment opportunity when liquidity is needed. Dividend income contributed 5% of total revenue in 2025. Fourth, other revenues. Additional revenues outside of 3 sources mentioned above accounted for 23% of total revenue, showing a significant increase of about 560% compared to the previous year. This growth is mostly because of the reflection of adjustment network that Qatar Cinema lease agreement. The net profit for the fiscal year ending 31st December 2025 amounted to QAR, 10,281,763 compared to QAR 4,177,342 for the same period in the previous years. Net profit decreased by about 146% compared to 2024, primarily due to previously mentioned to the affect the amendment of Qatar Cinema lease agreement. Company's total investment amounted to about QAR 102 million distributed between 34% in equity installment and 66% in real estate investment. Investment activities contributed 51% of total revenue. The company does not rely much on loan to finance its asset and currently funded assets through liquidity and other liabilities. The company's liquidity increased by approximately QAR 5 million by the end of December 2025, representing an 18% rise compared to the December 2024. The cash balance at the end of December 2025 was approximately QAR 33 million, improving the company's final position and improving the sustainability of its operation over the long term. Then on the financial results achieved this year, the Board of Directors released to propose as [indiscernible] meeting scheduled for March 8 2026, a recommendation to distribute cash dividend at a rate of 10% equivalent to QAR 0.16 per share in support of our valued shareholders. The company continued to support [indiscernible] by setting aside of QAR, 257,054 from the Neighborhood of The Year to support social and support activities. This amount is driven to 2.5% of the annual net profit. So [indiscernible] of the company. Given the recent market and an increase in competition in the cinema sector, the company observed a decline in the revenue in this sector. Due to the significant expansion of the cinema within shopping complexes, which negatively impact market share and revenue. Therefore, the company seek expansion and an innovation to ensure sustained growth and achieve long-term competitive advantage through carefully planned strategy that granted the achievement of these objectives. A Memorandum of Understanding were filed with Qatar Museum by authority to rehabilitate the cinema building and provide a media and culture activities in the line with Qatar Museum vision and standards. However, the projects have not started yet. Based on the Qatar Rail Company interest in acquiring part of the land of the [indiscernible] project. The company may remain in complete communication with the concern authority to reach compromised solution regarding the provision of the cinema land, ensuring the requirement for the rail projects are met while reserving shareholders right. We will provide you with the latest update once all details are finalized. We have this year to have participation in today's conference call. Thank you, and we are ready for questions.

[Operator Instructions] There is no further questions at this time. I would like to hand the call over back to our moderator. Dana, please go ahead.

If there are no questions, we would like to thank the company's management for the results update, and we look forward to speaking to you all for the first quarter results.

Thank you, Dana. Thank you.

Thank you, everyone, and that concludes our call for today. You may now all disconnect. Have a nice day ahead.