Theeb Rent a Car profit soars 83% to SAR 50.9 mln in H1 2021

Theeb Rent a Car Co. reported a net profit after Zakat and tax of SAR 50.9 million for the first half of 2021, a surge of 83% from SAR 27.9 million a year earlier.

The profit rise was spurred by continuous improvement in demand for the short-term car rental services in 2021, as the 2020 demand was adversely impacted by the COVID-19 pandemic. This improvement resulted in higher rented units with better utilization for the short-term rental segment. The long-term lease and car sales segment also reported better net profit, despite a drop in car sales revenue.

In Q2 2021, the company turned to a net profit after Zakat and tax of SAR 25 million against a net loss of SAR 6.17 million in the prior-year period.

The positive performance was attributed to the increased short-term rental revenues, which were adversely impacted by the COVID-19 pandemic in Q2 2020.

On a sequential basis, the company turned profitable from a net loss of SAR 4 million.