Saudi Cable turns to SAR 40.9M profit in Q1 2023

Saudi Cable Co. swung to a net profit of SAR 40.9 million in Q1 2023, from a loss of SAR 37.2 million a year earlier. 

The company's profits increased due to the reversal of the Zakat provision and better-than-expected results from an associate.

This came despite lower revenues for the first quarter due to the suspension of operations and the company undergoing financial refinancing procedures.

Shareholders’ equity, after excluding minority interest, reached (SAR 456.48 million) at the end of Q1 2023, compared to SAR 65.73 million in the year-earlier period.

In addition, the company’s accumulated losses stood at SAR 502.42 million.

Saudi Cable’s management determined five-year forecasts that indicate the firm will report net profit from 2025.

The plan included some assumptions regarding cash injections through the issuance of equity instruments, revenue growth based on future asks and bids, and the next creditor vote in January 2024 to convert a part of the debt into equity in the financial restructuring process. These items are based on future events, and hence contain material uncertainty about their outcome. The company will not modify its conclusion regarding this matter.