United Development Company Q.P.S.C. (UDCD) Earnings Call Transcript & Summary

Good morning, and welcome to the United Development Company Conference Call. [Operator Instructions] And finally, I would like to advise all participants that this call is being recorded. I'd now like to welcome Mr. Bobby Sarkar to begin the conference. Mr. Sarkar, over to you.

Yes. Thank you. Hi, hello, everyone. This is Bobby Sarkar, Head of Research at QNB Financial Services. I wanted to welcome everyone to United Development Company's third quarter and year-to-date 2022 results conference call. So on this call, as usual, we have Maher Naim, who is -- sorry, we have Maher Naim, who is the IR Officer; and Karim Farhat, who's also the IR Officer at UDC. And we will begin this conference with management going over the company's results followed by a brief Q&A. I would like to turn the call over now to Maher. Maher, please go ahead.

Yes. Hello, everyone. I hope everyone is well. The financial statement of United Development Company as of 30th September 2022, the end of Q3 of 2022, the company has achieved a revenue of almost QAR 1.3 billion, and the net profit for the company achieved was QAR 217 million, while the net profit attributable to the equity holder of the company almost reached to QAR 209 million. And the earnings per share is QAR 0.059. So there is an increase in the net profit of 5% compared to same period of last year and 16% for the net profit attributable to the equity holder as compared to prior year as well, same period. We are -- just to give an update, the company has on full force working on the development of land and working on the development projects and working based on the agreed plan and the milestone to be achieved. Thus, everything thus far is in order. And we are also, as everyone in the country, taking some certain measures and organizing certain events for the 2022 World Cup, which will be happening in a matter of 1 month. As you guys all know, The Pearl Island is a hub. So we are going to be having events throughout the tournament period in a short form that the company is continuously working on achieving the development of land, which will end up, of course, and lead and recognition of the desired revenue and profitability levels and also to contribute and this big event that 2023 having projects ready for -- sorry, the World Cup 2022, having certain projects ready for this -- among these 2 projects, we will be having the Corinthian Yacht Club, which should be fully operational during the World Cup, and it will be ready as well as The Golf Club where it will be ready, and we might be having like soft opening for it. It's a 9-hole golf club. But this is again -- and we will be having also certain entertainment itself. We have artificial beach. We have done and we have done a duck lake and so forth. So there are certain community projects that we also we have completed. So to participate -- to effectively participate within the World Cup tournament. Should you guys have any questions, please go ahead.

[Operator Instructions] There are no questions at this time. I would like to hand back to our presenter. Actually, there is a question that just came through now from Ejayan Al-ahbabi of Al Rayan Investors.

I have a question regarding your urban development revenue in the third quarter. It declined quite significantly. Could you tell us what was the rationale for this decline?

Yes. The urban development, what is it, urban development revenue is revenue related to the sale of properties, correct? So we had certain activities on the Gewan Island project, okay, that which have been -- which are working on, and they will be completed, hopefully, and the month of October and a couple of days. These activities should have been completed [indiscernible] Dublin during June, July. And accordingly, the revenue will be recognized for certain areas in Gewan Island. This did not finish as the initial demand for reasons beyond the company control, which led to the delay of recognition on revenue. Hopefully, in Q4, that urban planning development revenue will be reaching to the normal levels compared to prior year.

So this urban development has 2 things, the sale of units, land and the rental income, correct?

Yes, yes, yes. But of course, the major thing would be sale of property here.