The losses of Tuhama Advertising and Public Relations Company increased by 167% to reach 37.4 million riyals during the first nine months ending at the end of 2020, compared to losses of 14.1 million riyals during the same period of the previous year.
According to Arabnet in a company statement that the high losses are mainly due to the decrease in the total profit of approximately 14.4 million riyals, as the total profit of the advertising sector decreased by approximately 6.4 million riyals, as the company's revenues were negatively affected by the spread of the new Corona virus and the decrease in advertising spending Customers during the period.
In addition to the decline in revenues after the end of the advertising sites contract in Riyadh, and the total profit of the production sector decreased by approximately 4.9 million Saudi riyals as a result of the decline in demand for advertising production from customers, and the total profit of the retail sector decreased by approximately 3.8 million Real.
On the level of the third quarter, the company said that its losses amounted to 16.8 million riyals, an increase of 8.4% over the losses for the same period of the previous year, which amounted to 15.5 million riyals.
The company attributed this to a decrease in the total profit of the retail sector by approximately 2.2 million Saudi riyals, as the company's revenues were negatively affected by the spread of the new Corona virus, severe restrictions on travel for international flights and the huge decrease in the number of passengers for domestic flights, in addition to To the lack of a back-to-school season during this year.
The total profit of the production and advertising sectors decreased by nearly one million riyals as a result of the subsequent decrease in the volume of advertising spending from customers. General and selling expenses also increased by approximately 2.7 million riyals, including provision for credit losses of approximately 1.8 million riyals. p>
and the share of the results of the associate companies' business decreased by nearly 2.5 million riyals as a result of these companies being affected by the rapid decline in advertising spending from customers, and zakat provision increased by approximately 0.8 million riyals after the company’s capital increased.
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This decrease was partially offset by an increase in the total profit of the distribution sector by approximately 1.3 million riyals. During the same quarter of the previous year, approximately 2.5 million riyals were recorded as losses in intangible assets. Other income increased by approximately 4.3 million SAR of which 3.7 million riyals is a rent discount and 0.4 million riyals are profits from investments in a murabahat fund.
