Tihama Advertising Reports SAR 8.88M Net Loss in the Three Months 2026
TAPRCO 4070.SA | 0.00 |
On 2026-08-11 16:18:29 (Saudi Time), Tihama Advertising, Public Relations and Marketing Co.(4070.SA) announced its Interim financial results for the three months ended on June 30, 2026.
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 527,915 | 630,186 | -16.228 | 16,586,588 | -96.817 |
| Gross Profit (Loss) | 138,543 | 87,028 | 59.193 | 1,386,808 | -90.009 |
| Operational Profit (Loss) | -8,224,176 | -5,257,982 | 56.413 | -7,092,496 | 15.956 |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -8,882,290 | -3,455,398 | 157.055 | 15,997,322 | - |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -9,139,346 | -3,410,401 | 167.984 | 16,113,515 | - |
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Shareholders Equity (after Deducting Minority Equity) | 138,659,774 | 201,859,054 | -31.308 |
| Profit (Loss) per Share | -0.39 | -0.15 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -63,620,002 | -27.76 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
Year-on-Year Performance Drivers
Sales/Revenue declined 16.228% YoY from SAR 0.63 million to SAR 0.53 million (converted from Actual: 630,186 and 527,915 divided by 1,000,000 respectively), primarily due to the absence of sales from the Distribution Segment, partially offset by increased sales from the Production Segment. Net loss attributable to shareholders widened by 157.055% YoY from SAR -0.35 million to SAR -8.88 million (converted from -3,455,398 and -8,882,290 divided by 1,000,000 respectively), driven by losses on financial assets measured at fair value through profit or loss (compared to gains in the prior year period), recognition of net impairment losses on trade and other receivables, a decreased share of associates' results, and lower other income due to the absence of bank deposits, though these were partially offset by improved results from discontinued operations.
Quarter-on-Quarter Performance Drivers
QoQ revenue dropped 96.82% (from SAR 16.59 million to SAR 0.53 million), primarily due to the absence of revenue from the Events and Entertainment Segment, which had generated revenue in the previous quarter. Net profit swung to a loss of SAR -8.88 million from a gain of SAR 15.997 million(currency not specified in original) QoQ, driven by: (1) a revenue decline from the non-contributing Entertainment and Events segment; (2) a lower share of associates' results; and (3) the recognition of an exceptional gain in the prior quarter from the disposal of discontinued operations, which did not recur. These negative effects were only partially offset by reduced losses on financial assets measured at fair value through profit or loss.
Other Items
The external auditor issued a qualified conclusion on the interim condensed consolidated financial statements for the three-month period ended 30 June 2026. The basis for the qualified conclusion includes two matters: (1) investments in associates include SAR 56,145,486 representing the investment in J. Walter Thompson MENA, for which the Group recognized a share of results of SAR 850,329 and share of other comprehensive income of SAR 257,055 based on unaudited and unreviewed financial statements, with no audited financial statements available for the year ended 31 December 2025; additionally, other associates with nil carrying amounts had no audited or reviewed financial statements available, making it impossible to determine investment values or potential additional liabilities; (2) financial assets at fair value through profit or loss amounted to SAR 15,000,000 as at 30 June 2026, representing the investment in the Saudi Film Fund, for which sufficient appropriate evidence regarding fair value could not be obtained. The auditor also highlighted a material uncertainty related to going concern, noting that the Group's accumulated losses amounted to SAR 63,620,002 as at 30 June 2026 (representing 27.76% of capital), total comprehensive loss for the three-month period was SAR 9,140,208, and negative cash flow from operating activities amounted to 16,133,506 (currency not specified in original) for the period. Total shareholders' equity declined 31.308% to SAR 138,659,774 compared to SAR 201,859,054 in the same period of the prior year, with loss per share at SAR -0.39 versus SAR -0.15 in the prior year period. The company stated in the announcement that "the company is currently working on procedures to reduce losses and convert them into profits, especially since the company has sufficient liquidity to enable it to meet its obligations when due, in addition to plans to liquidate a number of subsidiaries and new investments and expand its business to generate cash flows to continue its operations." The announcement also notes that the procedures and instructions applicable to listed companies whose accumulated losses reach 20% or more of capital are being applied, as the accumulated losses of SAR 63,620,002 represent 27.76% of the company's capital, falling within the 20% to less than 35% threshold.
Original announcement:
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