The Clap
The net profit of Saudi Research and Media Group “SRMG” (4210) decreased by approximately 28% year-on-year in the first quarter of this year, reaching 86.9 million riyals.
Details
Research and Media was impacted during the period ending last March by a decline in its revenues from the advertising and public relations sectors, as well as printing and packaging.
Additionally, there was an increase in net financing costs.
So What
The quarterly revenue of the leading media group in the Middle East decreased by about 7.9% year-on-year to 814.9 million riyals.
Moreover, the earnings per share during the current period fell to 1.09 riyals, compared to 1.51 riyals in the first quarter of last year.
Some Context
The Board of Directors recently revealed the initiation of legal restructuring procedures for some of the group’s non-operating and wholly owned subsidiaries.
This involves their voluntary liquidation, striking off, or conversion into branches, in compliance with the applicable regulations and laws in each company’s geographical scope.
Research and Media clarified that the legal restructuring of some of its subsidiaries is part of its review of strategic plans.
It added that the restructuring will not have a “material financial impact” on the group’s consolidated financial statements in the upcoming period.
It will also not affect its media platforms and brand names.
The number of non-operating subsidiaries affected and owned by the group is 26, including 10 in Saudi Arabia.
Additionally, there are 5 in the United Kingdom and 4 in the UAE.
