Red Sea Housing has announced its financial headline figures for 2016. Revenue came in at SAR1.03bn (+0.2% Y-o-Y), gross profit at SAR260.6mn (+1.5% Y-o-Y), operating income at SAR116.1mn (+20.4% Y-o-Y), while net income came in at SAR88.0mn (+15.6% Y-o-Y). This implies SAR240.1mn in revenue (+16.3%); gross income of SAR54.7mn (-31.7% Y-o-Y, -9.7% Y-o-Y); operating income of SAR15.2mn for 4Q16 (-54.8% Y-o-Y, -32.1% Q-o-Q); while net income came in at EGP11.7mn (-56.8% Y-o-Y, -7.8% Q-o-Q). Management attributed the Y-o-Y weakness in profitability in 4Q16 to weak margins (4Q16 gross profit margin: 22.8%, 4Q15: 27.9%), which came on the back of lower revenue from rental activity, which was more than offset by a 15% drop in operating expenses on lower marketing and employee costs. (Tadawul)