Saudi’s Seera Group reports $8m in operating profit for Q3 2022

Saudi Arabia’s Seera Group has reported an operating profit of SAR30m ($7.98m) for the third quarter of the year.

The company has returned to its first post-pandemic operating profit, driven by the resurgence in travel demand, it said in a statement. The group generated a net profit after zakat (before non-controlling interest) of SAR54m.

Revenues of the company increased 53 per cent to reach SAR565m in Q3 2022 from SAR369m in Q3 2021.

Seera’s gross booking value (GBV) increased by 93 per cent for the third quarter of 2022 to SAR2.7bn, bringing the total GBV for the first nine months to SAR6.8bn. This marked a 100 per cent increase compared to SAR3.4bn for Q1-Q3 2021.

Almosafer – the Seera’s travel platform, Discover Saudi – the destination management company, and Mawasim – the Hajj and Umrah tour operator, achieved 100 per cent growth in GBV to SAR1.8bn in Q3 2022, up from SAR0.9bn in Q3 2021.

Almosafer, which operates the consumer and business travel segments, reported a 74 per cent rise in revenues to SAR155m in Q3 2022. Consumer travel, the platform’s largest segment, recorded a 167 per cent increase in GBV to SAR1.2bn and a 135 per cent rise in revenue to SAR84.5m for the third quarter of the year.

The corporate and government travel segment, Almosafer Business, reported a GBV of SAR559m in Q3 2022, posting a 24 per cent increase compared to SAR452m in Q3 2021.

Meanwhile, the Hajj and Umrah tour operator, Mawasim, reported a revenue of SAR13m for Q3 2022. The growth follows the Ministry of Hajj and Umrah’s announcement earlier this year enabling visitors with tourist visas to perform Umrah.

Discover Saudi, the destination management company recorded a GBV of SAR26m in Q3 2022, marking a 44 per cent increase compared to Q3 2021. Its growth has been boosted by MICE, with a rise in the number of events and conferences taking place in the kingdom and further driven by increased interest in Saudi Arabia as a tourist destination, the statement added.

Seera’s car rental business, Lumi, also recorded a 35 per cent growth in revenue to reach SAR188m in Q3 2022 compared to SAR139m in Q3 2021. The group’s hospitality business recorded a revenue of SAR27m, representing a 350 per cent growth in the third quarter of the year, while its corporate ventures unit posted a GBV of SAR601m Q3 2022, posting a growth of 86 per cent compared to Q3 2021.

“Seera’s return to profit following the challenges of the pandemic illustrates the incredible recovery of travel and our strategic positioning to capitalise on the pent-up demand,” said Majed Alnefaie, CEO at Seera Group.

Last month, Seera Group announced that it had partnered with the Saudi Air Connectivity Program, a government initiative which aims to develop and enhance tourism air connectivity of the kingdom.

Also read: Saudi’s Seera Group to operate inbound charter flights to the kingdom