Bahrain Cinema Company, a market leader in the entertainment industry in Bahrain, also known as Cineco, has announced a record net profit of BD37.33 million ($98 million) for the nine months period ended September 30.
The company posted a net profit of BD4.02 million reported during the corresponding period in 2016. The earnings per share (EPS) of the period ending September 30 was 472 fils as against the EPS of 51 fils registered in the same period of the last year.
The remarkable increase in net profit is due to the sale of 50 per cent 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 per cent of the assets of the said Cinema. This was done as per the joint venture agreement announced on September 27, 2016, and was approved by the shareholders on November 7, 2016.
The operating revenue for the nine months period of the financial year 2017 was BD13.25 million in comparison with BD17.82 million reported in the similar period of the year 2016, registering a decrease of 25.65 per cent.
The quarterly net profit was BD1.4 million during the third quarter of the year 2017, compared with BD2.6 million reported in the third quarter last year. The reason for the decline in the operating income of Bahrain Cinema Company for the quarter ending September 30 is that from July 1, 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, a statement said.
Dr Esam Abdulla Fakhro, chairman of Bahrain Cinema Company, mentioned that in accordance with the approval given by the Shareholders in the Extraordinary General Meeting held on the August 28 Cineco issued a stock dividend of 25 per cent of the paid up capital i.e., one new share was distributed for every four shares resulting in 16,524,690 shares being issued as bonus shares during the year.
Dr Fakhro said:“At Bahrain Cinema Company, we pride ourselves on the exponential level of growth we have maintained thus far through the constant provision of the highest standards of quality in entertainment by consistently innovating new and improved customer-oriented services and offers, and by incorporating the very latest screening technology in all of our Cinemas. Just as our latest financial results illustrate our sustenance of this trend, we hope to continue in the same degree and finish the year strongly, thus consolidating our status as leaders in the entertainment industry in the Kingdom of Bahrain.”
The chief executive officer of Bahrain Cinema Company, Ahmed Rashed said: “Through our wisely and astutely placed investments in lucrative projects with high potential for continued success and by partnering with established names that have illustrious pasts and driven ambitions, we constantly work to secure the future of our company and lead it through persistent periods of prosperity.
“And in that vein, we look forward to justifying the trust placed in us by both our shareholders and loyalists alike and to delivering in our promise to relentlessly persevere in our efforts in prioritizing and catering to the moviegoers we attract from all over the region.”
Cineco owns and operates a total of 49 cinema screens in the Kingdom of Bahrain and 47 screens in Qatar. – TradeArabia News Service
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