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.
| 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).
| 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 | 132.21 | 17.2 % |
| Net Income | 81.13 | 79.44 | (2.1 %) |
| Average Shares | 50.00 | 50.00 | - |
| EPS (Riyals) | 1.62 | 1.59 | (2.1 %) |
| Item | Q3 2023 | Q4 2023 | Change |
|---|---|---|---|
| Revenues | 303.99 | 369.19 | 21.4 % |
| Gross Income | 123.14 | 189.24 | 53.7 % |
| Operating Income | 92.96 | 132.21 | 42.2 % |
| Net Income | 62.93 | 79.44 | 26.2 % |
| Average Shares | 50.00 | 50.00 | - |
| EPS (Riyals) | 1.26 | 1.59 | 26.2 % |
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.
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