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The net profit of Tiba Investment Company Saudi Arabia decreased by 22.7% during the first nine months of 2026, to reach 230.9 million riyals, compared to about 298.8 million riyals during the same period in 2025, affected by the high operating expenses of new facilities and consumption costs, in addition to the lack of repeated exceptional gains achieved in the previous year, according to the company’s statement published on the site “Tadawul” Saudi Arabia, on Thursday.
The company’s financial results, operating in the hotel sector, property management and real estate development, showed a decrease in third-quarter profits from 44.9% to 33.3 million riyals, compared to 60.39 million riyals during the same quarter of 2025, despite the increase in revenues supported by the entry of new hotel establishments into operation.
Tiba Investment’s revenues during the first nine months of 2026 increased by 5.2% to reach 1.056 billion riyals
Revenue growth despite declining profits
During the first nine months of 2026, Tiba Investment’s revenues increased by 5.2% to reach 1.056 billion riyals, compared to 1.004 billion riyals during the corresponding period last year, an increase of about 52 million riyals, driven by the improvement in the performance of hotel activities and the increase in revenues achieved during the Hajj and Umrah seasons, as well as the growth of real estate sector revenues.
The operation of a number of new hotel facilities has contributed to supporting revenues, most notably Rixos Abhar Resort in Jeddah, Novotel Al Madina Hotel, and Crowne Plaza Hotel in Riyadh, as part of the company’s expansion into its hotel portfolio.
In contrast, the total profit decreased by 5.8% to 357.7 million riyals, compared to about 379.71 million riyals, during the same period in 2025, while operating income decreased by 9.4% to 274.5 million riyals, compared to 303.1 million riyals.
The profit per share fell to 0.46 riyals, compared to about 0.60 riyals during the first nine months of the previous year, while the profit of the share before the exceptional items increased by 7.6% to 0.46 riyals, compared to 0.43 riyals, with the average number of shares stable at 500 million shares.
Operating expenses and exceptional gains put pressure on the results
The company attributed the decrease in its net profit during the period to the increase in operating and depreciation expenses associated with the new establishments that joined its portfolio, in conjunction with the non-repetition of the impact of the reverse provisions that have previously contributed to enhancing the results of the comparative period.
These included the reversal of a special issue related to the termination of the contractual relationship with one of the operators, following a settlement between the two parties, as well as the reduction of the allocation of the depreciation of some fixed assets, which reflected positively on the profits of the first nine months of 2025.
The exclusion of the impact of the reverse of these provisions shows an improvement in the net profit of the current period of 18.1 million riyals, and by 8.5% compared to the same period of the previous year, reflecting the difference in performance after neutralizing the impact of exceptional items.
Third quarter profit falls 44.9%
On the third quarter of 2026, the company recorded a net profit of SAR 33.3 million, compared to SAR 60.39 million during the corresponding quarter of last year, a decrease of 44.9%.
The decline came despite the revenue growth of 6.3% to SAR 293.6 million, compared to SAR 276.3 million in the third quarter of 2025, an increase of SAR 17.3 million, benefiting from the start-up of new hotel facilities, including Rixos Abhar Resort in Jeddah, Novotel Al Madinah Hotel, and Crowne Plaza Specialist Hotel in Riyadh.
The total quarterly profit decreased by 7.8% to 74.1 million riyals, compared to 80.4 million riyals a year ago, while operating income decreased by 29.7% to 54 million riyals, compared to about 76.8 million riyals during the same period of the previous year.
The profit per share also fell to 0.07 riyals, compared to 0.12 riyals in the third quarter of 2025, while the profit per share before the exceptional items increased by 41.1% to 0.07 riyals, compared to about 0.05 riyals in the corresponding period.
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