Al Arabia 9M 2023 profit leaps 23% to SAR 238.8 mln; Q3 at SAR 62.9 mln

Arabian Contracting Co. (Al Arabia) reported a net profit of SAR 238.8 million for the first nine months of 2023, an increase of 23% compared to SAR 193.6 million a year earlier.

Revenues of outdoor and indoor advertising segments rose by 12% and 5%, respectively, compared to the same period of the previous year. This reflected the company's continuity in the digital transformation of advertising assets, which contributed to boosting the capacity to accommodate more advertisers.

In Q3 2023, net profit fell 5% to SAR 62.9 million from SAR 65.9 million in the year-earlier period.

Revenues for the third quarter rose by 18% year-on-year (YoY). Operating expenses increased by 47% YoY, mainly due to higher professional and consulting expenses related to completing the acquisition of Faden Media. Further, financing costs soared on an annual basis due to high interest rates.

On a sequential basis, Q3 net profit dropped 26% from SAR 85 million amid quarterly seasonal changes in the company’s main activity. This came as gross profit decreased by 13% quarter-on-quarter (QoQ), given the 19% QoQ jump in the cost of revenue.

Total shareholders’ equity, with no minority interest, stood at SAR 1.03 billion by the end of 9M 2023, compared to SAR 831.16 million in a year-earlier period.

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