Al Arabia 2023 profit up 16% to SAR 318.2M; Q4 at SAR 79.4 mln

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.

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).

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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