· The Saudi company’s first quarter net profit, after tax and Zakat, rose to SAR 283 million, up from SAR 205 million in same period last year, representing a year-on-year increase of about 38%, or SAR 78 million.
· Revenues rose 29.6% in the first quarter of this year, compared to the corresponding period of 2021
Arabian Internet and Communication Services Company (solutions) today (Tuesday) announced its financial results for the first quarter of 2022, which showed net profit rising to SAR 283 million, up 37.9% compared to the corresponding period in 2021. The company also posted a 29.6% increase in revenues compared to the first quarter of last year.
The increase in net profit is primarily due to growth in gross profit to SAR 494 million, which constitutes an increase of 26.7% compared to the first quarter of last year. This comes as a result of a rise of 29.6% in total revenues to SAR 2.418 billion during the first quarter of this year, compared to SAR 1.867 billion in the same period last year, which was offset by a hike in revenue costs by 30.3% (SAR 448 million).
The net profit gains are attributable mainly to increases in the revenues of basic communications and information technology services by 44.8%, information technology services and managed operational services by 13.4%, and digital services by 9.3%.
Commenting on the company’s latest quarterly financial results, the Chief Financial Officer of solutions, Abdulrahman Alrubaia, said: “In the first quarter of 2022 we have achieved positive results that we are proud of, which are considered the highest in the company’s history for financial quarters, as net profits increased by 37.9% due to the company’s higher revenues and strong performance.”
“These results reflect our commitment to our plans and strategies that seek to expand business within the company’s strategy to continue to lead the digital transformation in the Kingdom of Saudi Arabia, and to play a key role in shaping the new digital future under Vision 2030, in addition to providing innovative technical solutions that enable our customers to succeed and continuously develop, and achieve the best results that meet the expectations of investors.”
Revenues rose despite the increase in operating expenses by SAR 16 million, as a result of the increase in general and administrative expenses by SAR 26 million, in addition to a rise in other revenues and expenses by SAR 4 million and a hike in the Zakat expense by SAR 15 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to SAR 368 million during the first quarter, versus SAR 256 million for the same period last year, for an increase of 44%.