Riyadh – Mubasher: Saudi Cable Company's preliminary financial results revealed a 173.86% year-on-year (YoY) jump in net profits for 2024 .

The company stated, according to a statement issued by the Saudi Stock Exchange (Tadawul) on Thursday, that net profits after zakat and tax amounted to approximately SAR 48.758 million last year, compared to net profits of SAR 17.8 million in 2023 .

The company explained that the main reason for the jump in its profits during the period was due to the increase in sales, resulting from increased demand and improved customer attraction, which contributed to securing new projects and expanding the customer base to grow revenues .

The company reported a significant increase in revenue, leading to increased profitability, as well as the implementation of effective measures to control costs and improve operational efficiency .

Lower administrative, selling, and financing costs contributed to the improvement in net profit, while the company's share of the profits of its affiliate, Midal, reached 127 million, representing a 90% increase compared to the previous year.

The company recorded net profits from continuing activities amounting to 66.275 million Saudi riyals as a result of the company’s share in the results of the subsidiary’s business, while it incurred a net loss from discontinued activities amounting to (17.517) million riyals resulting from the subsidiary’s business in Türkiye.

The company stated that Note No. (1) to the condensed consolidated interim financial statements states that a court in Turkey issued a ruling in favor of Mas Kablo Yatirim VTech A.S. in the case filed by the minority shareholders of its subsidiary. An appeal was filed against the ruling by the aforementioned minority shareholders. However, based on a legal opinion obtained from an independent consultant who believes that the Court of Appeal's ruling will not differ from the original ruling issued by the Court of First Instance. In addition, the Group has assessed and recorded a potential liability amounting to SAR 52.5 million. Furthermore, the Group has made a full provision for the net assets of Mas Kablo Yatirim VTech A.S.

In this regard, the Group's Board of Directors decided on March 3, 2024, to divest its investments in Turkey, either by sale or by any other means permitted by Turkish law. These companies have not achieved the desired returns and have continued to incur losses over the past years, despite the unsuccessful solutions and remedies implemented by successive administrations, and the strengthening of the opinions of local and international legal advisors to support the exit decision. Our conclusion in this regard has not been modified.