solutions reports 16% net profit growth to SAR 353M in Q1 2024

Arabian Internet and Communications Services Co. (solutions) reported a net profit of SAR 353 million in Q1 2024, up 16% from SAR 304 million in the year-earlier period.

This was buoyed by a SAR 13 million increase in the first-quarter gross profit on higher revenue, which was offset by a SAR 120 million hike in the cost of revenue.

On the other hand, operating expenses (opex) slightly increased year-on-year (YoY) in Q1 2024 as a result of a SAR 9.3 million rise in general and administration (G&A) expenses. Additionally, Zakat and tax expenses decreased YoY by SAR 48 million during the three-month period.

On a quarterly basis, the first-quarter net earnings more than doubled from SAR 162.01 million, as opex shed SAR 10 million sequentially given the SAR 36 million slump in G&A expenses. This came despite revenues falling 2.1% quarter-on-quarter (QoQ), especially after managed IT and operational services softened QoQ by 10.2% in Q1 2024.

Shareholders’ equity, after minority interest, advanced to SAR 3.52 billion by March 31, 2024, compared to SAR 3.01 billion in the prior-year period.

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