Investors most upbeat about solutions in Q1 2024: Survey

Logo of Arabian Internet and Communication Services Co. (solutions)

Investors are most upbeat about Arabian Internet and Communication Services Co. (solutions) in the software and services sector in Q1 2024, a recent investor poll by Argaam showed.

eXtra received 82.14% of optimistic votes in the first quarter of 2024, compared to listed peers.

This comes at a time solutions is witnessing business growth through the implementation of qualitative projects that enables digital transformation in the Kingdom, in addition to the company's business expansion through some acquisitions in several sectors. Earlier this month, the company completed the acquisition of a 40% stake in Devoteam Middle East (DME) for AED 726.3 million (approximately SAR 741.7 million), paid fully in cash.

The acquisition aims to expand and diversify the business scope of solutions, delivering integrated and innovative services using best digital practices to meet the market needs for technical products and digital solutions in Saudi Arabia and the region.

solutions expected a positive impact on its operations of boosting the advisory and digital transformation services after the acquisition of Giza Systems and ccc by stc. This was besides the company's participation in a global investment round in US-based networking startup Nile. Further, solutions signed a revenue-sharing agreement with Remat Al-Riyadh Development Co. to build, manage, operate, and maintain smart public parking spaces in Riyadh. The first phase of the project targets 164,000 public parking spaces covering 12 zones in Riyadh, in addition to providing smart public parking management systems using modern technologies.

The 10-year contract’s value may exceed 5% of its revenues as per the latest audited annual financial statements for 2022. The financial impact of the deal will appear as of Q3 2024.

The IT services provider posted a leap of more than 25.38% in 2023 revenues to SAR 11.04 billion and a 13.2% rise in 2023 net earnings to over SAR 1.19 billion, according to data available with Argaam.

solutions has a proven record of more than 25 years of providing communications and information technology services in Saudi Arabia. This qualified it to be the first provider of IT services in the Kingdom and one of the largest contributors to accelerating the pace of digital transformation experienced by all sectors in the Kingdom.