Al Arabia 2024 profit down 15% to SAR 271.3M; Q4 at SAR 78.8M

Arabian Contracting Services Co. (Al Arabia) reported a net profit of SAR 271.3 million for 2024, a 15% decline from 318.2 million a year earlier.

The year-on-year (YoY) profit decline was mainly due to a 291% surge in financing costs in 2024. The increase stemmed from obligations under the public service concession agreement, the full-year impact of a loan used for the Faden Media Co.’s acquisition, and additional loans for advance payments on newly secured contracts.

This came despite a 32% YoY rise in revenue to SAR 1.7 billion.

The growth was driven by expansion across its advertising network and continued digital transformation efforts, which increased advertising space and offered tech-driven, data-informed ad solutions.

Outdoor advertising revenue rose 28% YoY to SAR 1.5 billion, remaining the largest contributor to total revenue. Indoor advertising revenue grew 46%, reflecting strong performance across segments.

Operating profit jumped 43% YoY to SAR 646 million, highlighting improved operational efficiency.

In Q1 2025, the company refinanced the loan used to acquire Faden Media, aiming to reduce financing costs and strengthen profitability.

In Q4 2024, Al Arabia posted a net profit of SAR 78.83 million, compared to a profit of SAR 79.44 million in the year-earlier period.

However, the company’s bottom line rose 77.9% from SAR 44.31 million in Q3 2024.

Total shareholders’ equity, excluding minority interest, stood at SAR 1.37 billion by Dec. 31, 2024, compared to SAR 1.11 billion a year ago.

View More Financial Results