Al Arabia 2023 profit up 16% to SAR 318.2M; Q4 at SAR 79.4 mln
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Arabian Contracting Services Co. (Al Arabia) reported a net profit of SAR 318.2 million in 2023, an increase of 16% compared to SAR 274.7 million a year earlier.
Financials (M)
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Revenues | 1,126.18 | 1,279.86 | 13.6 % |
| Gross Income | 486.99 | 598.17 | 22.8 % |
| Operating Income | 383.96 | 451.77 | 17.7 % |
| Net Income | 274.70 | 318.24 | 15.8 % |
| Average Shares | 50.00 | 50.00 | - |
| EPS (Riyals) | 5.49 | 6.36 | 15.8 % |
The company attributed the profit growth to a 16% rise in net profit after Zakat and tax, due to a 14% increase in revenues.
Revenues were refreshed as a result of the expansion of the advertising network in the operating segments, in addition to the continuation of the digital transformation of advertising aspects.
This growth coincided with a 7% year-on-year (YoY) increase in cost of revenues, which in turn led to a 23% rise in gross profit to SAR 598.2 million.
Outdoor advertising revenues logged 11% in 2023 to SAR 1.16 billion, constitute the largest percentage of the company's total revenues.
Similarly, revenues from the indoor advertising and printing segments witnessed significant growth of 49% and 33% YoY, respectively.
Meanwhile, operating and financing costs in 2023 increased by 42% and 107% YoY, respectively.
Financing costs rose due to higher interest rates and obtaining the long-term financing loan for the complete acquisition of Faden Advertising Agency (Faden Media).
Current Quarter Comparison (M)
| Item | Q4 2022 | Q4 2023 | Change |
|---|---|---|---|
| Revenues | 317.43 | 369.19 | 16.3 % |
| Gross Income | 145.57 | 189.24 | 30.0 % |
| Operating Income | 112.78 | 132.20 | 17.2 % |
| Net Income | 81.13 | 79.44 | (2.1 %) |
| Average Shares | 50.00 | 50.00 | - |
| EPS (Riyals) | 1.62 | 1.59 | (2.1 %) |
In Q4 2023, net profit fell 2.1% to SAR 79.44 million from SAR 81.13 million in the year-earlier period.
On a sequential basis, Q4 net profit rose 26.2% from SAR 62.93 million.
Total shareholders’ equity, with no minority interest, stood at SAR 1.11 billion by the end of 2023, compared to SAR 819.87 million in a year-earlier period.
Financial results (Million)
| Period | Revenues | Change | Gross Income | Change | Operating Income | Change |
|---|---|---|---|---|---|---|
| Q1 2023 | 312.37 | 8.7 % | 143.56 | 11.2 % | 114.72 | 8.2 % |
| Q2 2023 | 294.32 | 11.6 % | 142.23 | 33.9 % | 111.88 | 40.4 % |
| Q3 2023 | 303.99 | 18.0 % | 123.14 | 16.1 % | 92.96 | 8.7 % |
| Q4 2023 | 369.19 | 16.3 % | 189.24 | 30.0 % | 132.20 | 17.2 % |
| 2023 | 1,279.86 | 13.6 % | 598.17 | 22.8 % | 451.77 | 17.7 % |
Profit Performance (Million)
| Period | Net Income | Change | EPS(Riyal) | Extraordinary Income/Expense | Net Profit Before Unusual Items | EPS Before XO Items |
|---|---|---|---|---|---|---|
| Q1 2023 | 90.82 | 40.0 % | 1.82 | - | 90.82 | 1.82 |
| Q2 2023 | 85.04 | 35.4 % | 1.70 | - | 85.04 | 1.70 |
| Q3 2023 | 62.93 | (4.5 %) | 1.26 | - | 62.93 | 1.26 |
| Q4 2023 | 79.44 | (2.1 %) | 1.59 | - | 79.44 | 1.59 |
| 2023 | 318.24 | 15.8 % | 6.36 | - | 318.24 | 6.36 |
Profitability
| Period | Gross Margin | OIBDA Margin | Net Margin Before Unusual Items |
|---|---|---|---|
| Q1 2023 | 43.56 % | 73.34 % | 26.12 % |
| Q2 2023 | 45.47 % | 75.58 % | 27.32 % |
| Q3 2023 | 45.15 % | 71.97 % | 26.05 % |
| Q4 2023 | 46.74 % | 72.65 % | 24.86 % |
| 2023 | 46.74 % | 72.65 % | 24.86 % |
Per Share Data (Riyal)
| Period | Shares Outstanding (M) | EPS (Riyal) | Adjusted EPS (Riyal) | Book Value (BV) |
|---|---|---|---|---|
| Q1 2023 | 50.00 | 6.01 | 6.01 | 18.13 |
| Q2 2023 | 50.00 | 6.46 | 6.46 | 19.43 |
| Q3 2023 | 50.00 | 6.40 | 6.40 | 20.69 |
| Q4 2023 | 50.00 | 6.36 | 6.36 | 22.26 |
Multiple Ratios (End of Period Price)
| Period | P/E | Adjusted P/E | Price/book |
|---|---|---|---|
| Q1 2023 | 20.29 | 20.29 | 6.73 |
| Q2 2023 | 27.56 | 27.56 | 9.16 |
| Q3 2023 | 32.32 | 32.32 | 10.00 |
| Q4 2023 | 37.86 | 37.86 | 10.83 |
Business Segments (Million)
Q4 2023
| Period | Advertisement Sector | Printing | Reconciliation & elimination |
|---|---|---|---|
| Q1 2023 | 305.41 | 11.00 | (4.04) |
| Q2 2023 | 287.02 | 10.33 | (3.03) |
| Q3 2023 | 297.64 | 8.82 | (2.47) |
| Q4 2023 | 363.20 | 7.90 | (1.91) |
Analysts Estimates (Million)
| Item | Q4 2023 (e) | Q4 2023 (a) | Change |
|---|---|---|---|
| Average | 101.29 | 79.44 | (21.6 %) |
Estimates vs Actual (Million)
| Item | Q4 2023 (e) | Q4 2023 (a) | Change |
|---|---|---|---|
| AlJazira Capital | 88.90 | 79.44 | (10.6) % |
| Al Rajhi Capital | 100.00 | 79.44 | (20.6) % |
| YAQEEN | 102.26 | 79.44 | (22.3) % |
| GIB Capital | 114.00 | 79.44 | (30.3) % |
| Current | |
| Market Cap (M Riyal) | 7,950.00 |
| Enterprise Value (EV) (M) | 9,249.29 |
| Shares Outstanding ((M)) | 50.00 |
| EPS ( Riyal) (TTM) | 5.44 |
| Book Value (BV) ( Riyal) | 25.89 |
| Par Value ( Riyal) | 10.00 |
| Adjusted P/E (Last12) | 29.24 |
| P/E (TTM) | 29.24 |
| Price/book | 6.14 |
| Return on Average Assets (%) (TTM) | 7.2 |
| Return on Average Equity (%) (TTM) | 23.4 |
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