Recurring net income: SAR12.5mn, +2% Y-o-Y, 2% Q-o-Q, -35% vs. EFGe Headline net income: SAR7.3mn, -40% Y-o-Y, -40% Q-o-Q, -62% vs. EFGe Revenue: SAR744mn, +3% Y-o-Y, -15% Q-o-Q, -3% vs. EFGe Operating profit: SAR11.9mn, 0% Y-o-Y, -2% Q-o-Q, -42% vs. EFGe   eXtra reported lackluster 3Q16 results, with flattish operational performance largely mirroring 2Q16 trends. Headline earnings fell 40% Y-o-Y as the company booked a one-off charge of SAR5.2mn related to advisory fees of the cancelled acquisition of a clothing retailer (letter of intent terminated on 31 July 2016). Excluding the charge, earnings would have been flattish Y-o-Y (+2%) at SAR12.5mn, but still below our estimate by 35%, as we were expecting some margin recovery this quarter that did not materialise. Revenue was up only 3% Y-o-Y (-3% vs. EFGe) as showroom openings (three additional ones) offset weak LFL trends due to slower discretionary spending and a weak electronics market. Margins were flattish across the board (gross margin and EBIT margin -10bps Y-o-Y), also leading to flat gross profit (+3% Y-o-Y) and operating profit (+0%), but were below our numbers (-6% and -42%, respectively) as we were expecting some slight margin improvement from a low base.   Not an exciting results set, with no signs yet of margin recovery. We have a Neutral rating on the stock. (Earnings release, Hatem Alaa, Nada Amin)   eXtra: SAR15.88 as of 18 October 2016, Rating: Neutral, FV: SAR24.00 per share, MCap: USD152mn, EXTRA AB / 4003.SE