National Corporation for Tourism & Hotels

1. Company Overview & Earnings Context

National Corporation for Tourism & Hotels (NCTH) is an ADX-listed hospitality group engaged in hotel ownership and management, catering, retail services, facility management, investment properties, and other tourism-related businesses across the UAE and overseas. During 2025, the company completed a transformational reverse acquisition of Alpha Dhabi Hospitality Holding's hospitality assets, significantly expanding its operations.

For H1 2026, NCTH delivered steady revenue growth supported by stronger catering, retail, investment property, and other service businesses. However, profitability declined compared with the previous year, mainly because H1 2025 included a one-off bargain purchase gain of AED 97.0 million, while hotel profitability softened and operating costs increased in certain business segments.

2. Financial Performance Snapshot

• Revenue: AED 1.125 Billion (+5.6% YoY)

• Gross Profit: AED 401.0 Million (-4.6% YoY)

• EBITDA: AED 238.3 Million (-34.2% YoY)

• Profit Before Income Tax: AED 160.4 Million (-39.6% YoY)

• Income Tax Expense: AED 22.1 Million (-19.1% YoY)

• Net Profit: AED 138.3 Million (-41.9% YoY)

• Earnings Per Share (EPS): AED 0.06 (vs. AED 0.11)

Compared with H1 2025:

• Revenue increased from AED 1.065 billion to AED 1.125 billion.

• EBITDA declined from AED 362.4 million to AED 238.3 million.

• Profit before income tax decreased from AED 265.4 million to AED 160.4 million.

• Net profit fell from AED 238.1 million to AED 138.3 million, primarily due to the absence of the one-off bargain purchase gain recognized in the prior year.

3. Operational Highlights & Key Metrics

• Total Assets: AED 6.79 Billion

• Shareholders' Equity: AED 5.11 Billion

• Cash & Bank Balances: AED 716.6 Million

• Net Cash Generated from Operating Activities: AED 111.6 Million

• Hotel Revenue: AED 488.0 Million

• Catering Revenue: AED 261.6 Million

• Other Services Revenue: AED 329.5 Million

• Retail Revenue: AED 29.7 Million

• Investment Property Revenue: AED 24.6 Million

• Capital Commitments: AED 10.0 Million

• Operating cash flow remained positive despite higher working capital requirements.

4. Key Performance Drivers

Revenue growth was supported by higher contributions from the catering, retail, investment property and other services businesses. Hotel operations remained the largest contributor but generated lower revenue and profit before tax compared with last year. EBITDA and net profit declined largely because H1 2025 benefited from a non-recurring bargain purchase gain of AED 97.0 million. Higher material and operating costs also weighed on catering profitability, while the group continued investing in property, equipment and business expansion.

5. Outlook & Forward Guidance

NCTH continues to focus on integrating its expanded hospitality portfolio following the reverse acquisition completed in 2025. The enlarged platform strengthens the company's hotel ownership, catering, facility management, and tourism businesses while creating opportunities for operational efficiencies, future growth, and enhanced value creation across the hospitality sector.

6. Investor Takeaway

NCTH delivered healthy top-line growth in H1 2026 despite a softer earnings performance. The decline in profitability was largely driven by the absence of last year's exceptional one-off gain rather than weakness in the underlying business. With a strong balance sheet, diversified hospitality operations, and an expanded asset base following its transformational acquisition, the company remains well-positioned for long-term growth.