Thursday, May 28, 2020

Cineco Announces Record Net Profit of BD34.70 Million

The Directors of Bahrain Cinema Company, market leaders in the entertainment industry in the Kingdom of Bahrain, also known as Cineco, announced a record Net Profit of BD34.70 million for the financial year ended 31st December, 2017 during the Board meeting held on Sunday, the 25th of February, 2018.

The Net Profit reported for the financial year ended 31st December, 2017 is BD 34.70 million as compared to BD4.87 Million reported during the financial year ended 31st December, 2016. The Earnings Per Share of the year ended 31st December, 2017 was 438 fils as against the EPS of 62 fils registered in the same period of the previous year.

The remarkable increase in net profit is due to the sale of 50% of the assets of City Centre Cinema location for the total amount of BD19.5 Million and also the resultant fair value increase due to revaluation of remaining 50% of the assets of the said Cinema. This was done as per the joint venture agreement announced on 27th September 2016, and was approved by the shareholders on 7th November 2016.

The operating revenue for the financial year ended 31st December, 2017 was BD14.84 million in comparison with BD22.88 million reported in the year 2016, registering a decrease of 35.14%. The reason for the decline in the Operating Income of Bahrain Cinema Company for the year ending 31st December, 2017 is that from the 1st of July, 2017, the income and expenses of Cineco 20, City Centre were accounted in a separate associate Company. Therefore, in its financial statement, Cineco recorded only its share of net profit for the period. Cineco has also registered a Net Loss of BD 2,628,768/- for the Fourth Quarter of the year 2017 as against the Net Profit of BD 849,176/- reported in the corresponding period of the financial year, 2016. This decline is purely due to the impairment of investment amounting to BD2.8 million in Qatar Bahrain International Cinema and Al Murjan Restaurant in the State of Qatar in the fourth quarter of the financial year, 2017. The Board decided to impair due to geopolitical instability prevailing between State of Qatar and other GCC Countries.

Dr. Esam Abdulla Fakhro, Chairman of the Board of Bahrain Cinema Company stated the Board of Directors’ proposal to issue a cash dividend of 50% of the paid up capital i.e., 50 fils per share, subject to obtaining approval from shareholders and Regulatory authorities.

Commenting on the company’s overall performance, Dr. Esam said: “Over the years, we have been at the forefront of the entertainment industry in the Kingdom of Bahrain through our provision of constantly evolving, pioneering technology and exemplary services to our customers. We have created countless memorable experiences for moviegoers, which in turn consolidate our leading position in the Kingdom. And as our financial statements for the year ending 31st December, 2017 highlight, we have impressively sustained that trend during the past year as well. Now, using the extraordinary accomplishments of the previous year to further motivate ourselves, we look forward to expanding our efforts and to moving forward and outdoing ourselves in the interests of both our shareholders and loyalists.”

The Chief Executive Officer of Bahrain Cinema Company, Mr. Ahmed Rashed said: “The past year has been enormously prosperous for us in terms of the success we achieved through the numerous strategic business initiatives we executed that served to substantially augment the movie experience for our customers. In the same vein, this year, we aim to extensively improve ourselves through the myriad expansionist plans we have in place that will help us achieve unprecedentedly positive results, both on a financial and experiential scale.”

Cineco owns and operates a total of 49 cinema screens in the Kingdom of Bahrain and 47 screens in Qatar.

Since its establishment in the Kingdom of Bahrain in 1968, Cineco succeeded over the years by pioneering many firsts, establishing benchmarks in Bahrain’s entertainment industry.

Cineco continues to strive towards maintaining sustainable growth through the philosophy of business excellence using the best business excellence model.

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