On 2026-08-02 08:10:18 (Saudi Time), Jabal Omar Development Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, Jabal Omar Development Co. reported sales/revenue of SAR 1,454.32 million, up 16.397% YoY from SAR 1,249.44 million, driven by continued improvement in hotel performance particularly during Hajj season and the opening of Rotana Hotel at the beginning of the current year. However, net profit attributable to shareholders fell sharply by 69.562% YoY to SAR 275.12 million from SAR 903.88 million, primarily because the prior-year period included exceptional gains from land sales and a reversal of zakat provision that were not repeated in the current period. This decline was further compounded by an increase in property depreciation expense of SAR 35 million (a non-cash item) following the commencement of operations at Rotana Hotel. These negative factors were partially offset by an increase in gross profit of SAR 82 million from higher hotel revenues, a decrease in impairment provision of SAR 206 million, and a decrease in finance costs of SAR 98 million driven by lower average financing costs and debt balances, along with a one-time accounting adjustment related to the refinancing of a loan facility.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 3.249% to SAR 715.15 million (vs. SAR 739.17 million in the prior quarter), primarily due to the Ramadan season falling in the previous quarter and adjustments related to revenue previously recognized in commercial centers. Despite the revenue dip, net profit attributable to shareholders rose 35.165% QoQ to SAR 158.13 million (from SAR 116.99 million), driven by a decrease in the impairment provision and lower financing costs resulting from a one-time accounting adjustment related to the refinancing of a loan facility.

Other Items

The external auditor issued an unmodified conclusion with no additional comments in any other matter, conservation, notice, disclaimer of opinion, or adverse opinion paragraphs. No material risks such as going concern uncertainties or debt covenant breaches were flagged. Total shareholders' equity (after deducting minority equity) stood at SAR 16,137.52 million as of the current period, compared to SAR 14,373.67 million in the same period of the prior year, representing a 12.271% increase. Earnings per share for the current six-month period were SAR 0.23, down from SAR 0.77 in the same period of the prior year. Certain comparative amounts have been reclassified or re-presented during the current year for better presentation.

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