solutions H1 2023 profit up 16% to SAR 643 mln; Q2 at SAR 340 mln

Arabian Internet and Communication Services Co. (solutions) posted a net profit of SAR 643 million for H1 2023, a rise of 16% from SAR 556 million a year earlier.

The basic earnings per share (EPS) for the current period stood at SAR 5.41 per share, while EPS for the comparative period was SAR 4.68 per share, which is calculated by dividing the shareholders' net income by the weighted average number of shares after deducting treasury shares.

The profit growth was mainly due to an increase in gross profit of SAR 339 million, as a result of a rise in revenues of SAR 1.05 billion, which was offset by the cost of revenues that went up by SAR 710 million.

The higher revenues were mainly driven by a 22.7% year-on-year (YoY) increase in core ICT services. IT managed and operational services and digital services rose by 34.4% and 14.8% YoY, respectively.

Operating expenses, however, increased by SAR 202 million YoY on a rise of SAR 67 million in general and administrative expenses. Selling and marketing expenses also increased by SAR 134 million.

In addition, total other expenses and income fell by SAR 10 million, while Zakat and tax charges grew by SAR 39 million.

The company reported a net profit of SAR 340 million in Q2 2023, a 25% increase from SAR 273.09 million in Q2 2022.

On a sequential basis, Q2 2023 net profit rose 11.8% from SAR 304 million.

Total shareholders’ equity, excluding minority interest, reached SAR 2.78 billion by the end of the period, compared with SAR 2.36 billion a year earlier.

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