Seera Group (formerly Al Tayyar Travel Group), (the “Company”) (Tadawul: 1810) – the Middle East’s leading technology-powered travel and tourism company today announced financial results for the second quarter ending 30 June, 2019.
Financial Highlights
- Group gross booking value (GBV) increased by 4.6% in Q2 2019 to SAR 2.8 billion vs. SAR 2.67 billion in Q2 2018; while for H1 2019 vs. H1 2018 GBV remained stable at SAR 5.1 billion. Overall, the impact of the non-renewal of the MOE contract was offset by the strong and consistent growth in consumer travel and car rental units.
- Consumer Travel recorded SAR 1,127 million in GBV for Q2 2019 with the online business posting SAR 844 million, a 70% growth over last year, and is well positioned to achieve the SAR 3 billion target for FY 2019
- Car Rental posted significant jump in its revenue, almost doubling vs. Q2 2018, with a growth of 91% to SAR 60m
- Hospitality grew 11% (v’s Q2 2018) to SAR 46M due to improved performance and operational efficiency from owned assets.
Abdullah Aldawood, CEO at Seera Group said:
"Q2 was a milestone period for the group with our rebranding to Seera, unveiled at ATM to 40,000 travel professionals. As MENA’s largest homegrown tech led travel company, Seera with its state-of-the-art data & technology platform, enables Almosafer’s cutting-edge travel platforms on web, mobile web and app, as well as the innovative retail experiences we are starting to rollout across the Kingdom. Our transformation strategy continues to drive our financial performance – with particular focus on online consumer travel which grew at 70%. The group will continue growing its market share, customer network and supplier network building increasingly higher barriers for competition by investing in its omni channel consumer offerings, digital travel management solutions for government & corporate travel solutions, Hajj & Umrah products, as well as scaling Seera’s state-of-the-art data & technology platform and key strategic partnerships.”
Group revenue was SAR 488 million in Q2 2019 as compared to SAR 531 million in Q2 2018. The reasons for the decline reflects the non-renewal of the Ministry of Education (MOE) contract. The group has significantly diversified and balanced its revenue sources predominantly through focus on consumer travel.
Q2 saw Seera divesting its investment in Careem Inc., with an exit value of SAR 1.78 billion, in connection with the acquisition of Careem by Uber Technologies Inc., a San Francisco headquartered transportation network company. The net proceeds from the sale will be received partly in cash and partly in convertible notes in Uber, which are subject to the satisfaction of terms and conditions. The acquisition of Careem’s business in each country is subject to applicable regulatory approvals. The transaction is expected to close in 2020.
Key Milestones in Q2
- Seera unveiled its new identity and direction to more than 40,000 travel professionals at the region’s largest travel exhibition; Arabian Travel Market (ATM). Focus was on the group’s new portfolio structure; with six distinct travel verticals serving consumers, businesses and governments across the region.
- At the World Travel Awards, held in Abu Dhabi on 25th April 2019, Seera won Saudi Arabia’s leading business travel agency and travel management company, before our consumer travel brand; Almosafer scooped the accolades for the Middle East and Saudi Arabia’s leading online travel agency.
- Seera signed a direct connectivity distribution agreement with IHG (InterContinental Hotels Group) to offer competitive rates and last-minute availability on IHG properties worldwide to offline and online travellers of Seera and its portfolio brands.
- Accor also entered into a direct connect partnership with Seera. Accor will provide Seera Group’s online and retail channels with direct access to real-time rates and availability for its portfolio of 4,800 hotels and resorts in 100 countries worldwide
- The consumer Travel Business Unit, Almosafer, partnered with ALFURSAN; SAUDIA’s frequent flyer programme, to integrate the capability of earning Reward Miles across its web, app and retail offering.