Al Tayyar Travel Group (1810.SE) posted KPI’s for 4Q16 with net income of SAR145mn dropping 33% Y-o-Y (-23% sequentially on seasonality) due to a drop in revenues (-7% Y-o-Y to SAR2,036mn) on slower travel and tourism trends in addition to a decrease in ticket prices due to discounts from airlines. The disclosure added that excluding the impact of gain on acquisition of subsidiaries (SAR10mn) net profit fell 37% Y-o-Y. Online bookings for the group grew nearly sixfold to SAR145mn (7% of revenue). Gross margin contracted 360bps to 15.4.% as the company trimmed margin for market share gains in some services in addition to a change in product mix. Accordingly gross profit fell 25% Y-o-Y. EBIT declined 36% Y-o-Y, with the margin contracting 310bps Y-o-Y to 7.2% as SG&A fell 12%. Earnings for FY2016 declined 29% Y-o-Y to SAR826mn.