Seera turns profitable in Q3 2022 for first time since pandemic, inbound tourism ‘developing’: CEO

Seera Group Holding CEO Majed Al Nefaie

Seera Group Holding swung to profit in Q3 2022 for the first time since the outbreak of the COVID-19 pandemic, but it was not that easy, CEO Majed Al Nefaie told Argaam in a phone call.

The travel group invested in technology during the pandemic, maintained cadres and developed systems to retain its market position, he added.

Inbound tourism has marginal contribution, compared to outbound tourism. It is difficult to compare, as the Kingdom is still in the process of developing the domestic product. Moreover, government support to drive inbound tourism is significant. Seera is keen to be a key element of this effort, Al Nefaie affirmed, pointing to the strong turnout shown by foreign tourists in the Kingdom.

Outbound tourism is witnessing higher demand from businesses and individuals in various countries, such as Thailand, Turkey and Qatar, as well as Dubai, Egypt and London, where tourism goes continuously.

All Seera’s segments realized growth. Omni-channel travel service provider Almosafer was the largest contributor to the group’s profit, he elaborated.

On the other hand, Al Nefaie added that the travel group is coordinating with the Ministry of Tourism and other companies to increase the number of flights to and from Doha during FIFA World Cup Qatar 2022, in addition to other destinations that might receive interest from soccer fans.

Elsewhere, he added that Seera is still in talks with the Public Investment Fund (PIF) to reach a final agreement on its acquisition of a 30% stake in Almosafer. When concluded, this agreement will expand Almosafer’s activities and to become a key player in the Saudi tourism.

Al Nefaie said, “Seera’s financial position after exiting Careem is robust. The revenues generated from Lumi and Almosafer backed its solid balance sheet,” ruling out any plans for a sukuk issuance.

The travel group narrowed its net loss after Zakat and tax to SAR 81 million in the first nine months of 2022, from SAR 300 million in the prior-year period.  It turned to a net profit after Zakat and tax of SAR 51.3 million in Q3 2022, Argaam earlier reported.