Budget Saudi reports higher profits on marketing programs: CEO

United International Transportation Co. (Budget Saudi) managed to boost short-term rentals backed by launching marketing programs, which increased revenue per vehicle and accordingly the company’s earnings, CNBC Arabia reported, citing Chief Executive Officer, Fawaz A. Danish.

“Budget Saudi Arabia reported improved earnings from car sales in 2019, compared to a year earlier, as 70% of its fleet represents long-term contracts,” said Danish.

The company posted higher revenue from retail car sales, on improved retail-oriented marketing campaigns.

The Saudi car-rental firm can get special discounts from car distributing companies, as it acquires thousands of cars every year, which enables it to reach a fair value upon re-sale.

“The dividend payment at SAR 2 a share for 2019 is considered the highest since inception,” stated Danish, expressing an optimistic outlook for the market performance in 2020 amid improved economic conditions.

Budget Saudi reported a 5% profit increase year-on-year (YoY) to SAR 178.6 million in 2019, Argaam reported earlier.