EDARAT Reports SAR 19.79M Net Profit in the Six Months 2026
EDARAT 9557.SA | 0.00 |
On 2026-07-29 08:00:52 (Saudi Time), Edarat Communication and Information Technology Co. (EDARAT) announced its Interim financial results for the six months ended on June 30, 2026.
| Element List | Current Period | Similar period for previous year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 91,639,061 | 75,152,675 | 21.937 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 19,785,831 | 15,243,000 | 29.802 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 115,174,064 | 76,282,528 | 50.983 | ||
| Profit (Loss) per Share | 2.62 | 2.02 | |||
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is |
Revenue increased by 22% to SAR 91.6 million in H1 2026 compared to SAR 75.2 million in H1 2025. This growth was driven by the continued expansion across both business segments:
Data Center Engineering Services revenue grew by 27% to SAR 56 million, supported by new contracts and higher projects value.
Cloud Services revenue increased by 15% to SAR 35.6 million, reflecting the expansion of colocation capacity. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is |
Net profit increased by 30% to SAR 19.8 million in H1 2026 compared to SAR 15.2 million in H1 2025, yielding a net profit margin of 21.6%. The increase is mainly attributable to:
Higher revenue across both business segments
Improved gross profit, which rose to SAR 33.8 million compared to SAR 27.9 million in the prior period
Enhanced operational efficiency and optimized cost structure
These factors collectively contributed to the improvement in net profit for the period. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Reclassification of Comparison Items | An amount of SAR 3,160,966 was reclassified from general and administrative expenses to selling and marketing expenses in the comparative figures, with no impact on net profit or shareholders' equity. |
| Additional Information |
On 14/6/2026 G, the General Assembly approved increasing the Company's capital from SAR 50.4 million to SAR 75.6 million through bonus shares issued from retained earnings. Earnings per share have been calculated based on the new number of shares, and the comparative figure has been restated accordingly.
For inquiries, please contact the Investor Relations Department during official working hours at: Phone: +966581822902 Email: IR@edaratgroup.com |
Year-on-Year Performance Drivers
Revenue increased 21.937% YoY to SAR 91.64 million (from SAR 75.15 million) in H1 2026, driven by a 27% growth in Data Center Engineering Services revenue to SAR 56 million supported by new contracts and higher project values, and a 15% rise in Cloud Services revenue to SAR 35.6 million reflecting expanded colocation capacity. Net profit attributable to shareholders rose 29.802% YoY to SAR 19.79 million (from SAR 15.24 million), yielding a net profit margin of 21.6%, primarily attributable to higher revenue across both business segments, improved gross profit rising to SAR 33.8 million from SAR 27.9 million, and enhanced operational efficiency with an optimized cost structure.
Other Items
The external auditor issued an unmodified conclusion for the period. Total shareholders' equity (after deducting minority equity) stood at SAR 115,174,064, compared to SAR 76,282,528 in the same period of the prior year, representing a 50.983% increase. Earnings per share were SAR 2.62, up from SAR 2.02 in the prior comparable period. A reclassification of SAR 3,160,966 was made from general and administrative expenses to selling and marketing expenses in the comparative figures, with no impact on net profit or shareholders' equity. Additionally, on June 14, 2026, the General Assembly approved a capital increase from SAR 50.4 million to SAR 75.6 million through bonus shares issued from retained earnings, with earnings per share recalculated based on the new share count and comparative figures restated accordingly. No material risks, going concern uncertainties, or accumulated losses were disclosed in this announcement.
Original announcement:
https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=97042&anCat=1&cs=9557&locale=arImportant Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.