MIS diversity of services boost Q4 2022 earnings: CEO

Abdullah Al Ghamdi, CEO of Al Moammar Information Systems Co. (MIS)

Al Moammar Information Systems Co.'s (MIS) fourth-quarter profit growth was driven by increased revenue due to the diversity of business services in various segments, CEO Abdullah Al Ghamdi told Argaam in a phone call.

The segments include infrastructure solutions, systems integration, cyber security, managed services, data centers, and new digital solutions, amid continuous improvement and development of operational efficiency in basic operations, business divisions and services provided.

Strengthening the relationship with strategic clients and expanding the client base also supported the profit growth, the CEO said. He indicated that contracts with government agencies contributed 60% to Q4 2022 revenue compared with 40% from the private sector.

The volume of contracts under operation amounted to approximately SAR 2.5 billion in 2022, Al Ghamdi said, expecting the company to win new projects worth SAR 2 billion in 2023.

Touching on MIS loans, the top executive said they are small loans reaching SAR 370 million, indicating that interest rates impact most companies that have facilities, and they relatively affect MIS. However, this can be absorbed through robust operations and an expected collection improvement.

MIS is expected to post more than 50% increase in 2023 revenue, Al Ghamdi said, expecting profit to exceed revenue in growth percentage, with the performance varying from one quarter to another according to the percentage of project completion.

The Tadawul-listed firm reported a spike of 70% in its annual net profit after Zakat and tax to SAR 95.9 million, from SAR 56.5 million in 2021, thanks to growth in core operations across all products lines and services. The fourth-quarter net profit more than doubled to SAR 49.3 million, according to data available with Argaam.