eXtra’s profits buoyed by improved operational efficiency, consumer finance revenue: CEO

A United Electronics Co.’s (eXtra) store

United Electronics Co.’s (eXtra) robust earnings were driven by improved operational efficiency and higher services revenue, Managing Director and Chief Executive Officer, Mohamed Galal, told Argaam in a statement.

The higher profit was also backed by increased revenue from eXtra’s wholly-owned consumer finance unit, United Company for Financial Service (Tas’heel), he added.

eXtra remains committed to developing its business model via the optimum use of technological methods either in retail or consumer finance, as well as to offer the highest quality services, in line with the clients’ aspirations, Galal noted.

The company managed to boost its foothold regionally by introducing multi-channel retailing to offer customers the easiest and most distinctive shopping experience and make the best use of technological methods in operations. extra also provided the best FinTech solutions and Shariah-compliant consumer finance services, he added.

The home appliance retailer was the first to launch a full-fledged consumer finance e-platform (Tas’heel) last year, which built up a financing portfolio of around SAR 1.2 billion by the end of Q3 2021, up 79% year-on-year (YoY) with lower non-performing loans (NPLs) rates.

Tas’heel platform is linked with more than seven digital service entities to enhance the measures using the best risk-management policies.

This came as a result of thoroughly-knitted plans and profound knowledge of the Kingdom’s lending market over the last five years; as eXtra caters for nearly 500,000 clients firstly by store instalment plans until it set up its first profit-making FinTech firm, Galal stated.

The Saudi retailer is committed to developing its operations regionally, offering the highest quality services, and adding value to shareholders, he added. 

eXtra reported a net profit after Zakat and tax of SAR 270.8 million for the first nine months of 2021, a 52% increase, compared to SAR 178.5 million in the year-earlier period. Net profit after Zakat and tax for Q3 2021 surged 67% YoY to SAR 89.1 million, Argaam reported.