Cineco upbeat as profit hits $16.7m

14/03/2016 07:57 AST

Bahrain Cinema Company, also known as Cineco, has reported a decrease of 16.55 per cent in last year's net profit at BD6,310,267 ($16.7 million) when compared with BD7,561,843 in 2014.

A statement issued yesterday said the company's board of directors has recommended cash dividend distribution equal to 50pc of paid-up capital, which translates to 50 fils per share.

The announcement follows a meeting of the board at the cineplex at Wadi Al Sail Mall in Riffa, which also saw recommendation of the appropriation of the remaining balance of BD22.79m to retained earnings, subject to approval of the shareholders during the upcoming annual general meeting.

The company said its operating income saw growth of 9pc from BD19.97m in 2014 to BD21.72m last year.

Similarly, operating profit grew by 10pc to BD7.6m from BD6.9m. Earnings per share were 98 fils in 2015 as against 115 fils in 2014. For the fourth quarter last year, net profit at BD1,417,922 was 76.43pc higher when compared with BD803,666 in the same quarter of 2014.

Cineco chairman Dr Essam Fakhro said not only did the company make substantial financial returns last year but also made large-scale investments on new expansion projects which the management was fully geared to implement.

The sole reason for the decrease in net profit was the crash in securities prices in GCC markets, he added.

"We believe it is imperative that we counter this by growing our existing businesses in both Bahrain as well as in the GCC region, whilst we simultaneously plan ahead in investing in other areas where the populace lacks opportunities for premium, value-for-money entertainment."

Cineco chief executive Ahmed Rashed said work on the cineplex in the new Wadi Al Sail Mall in Riffa was already complete and it would receive moviegoers soon. "Work on the cineplex in Al Khor Mall and the Gulf Cinema Mall, both in Doha, is nearing completion as well," he added.

"We now look forward to a new, more rewarding year full of the promise of better things to come."

Gulf Daily News