On 2026-07-29 08:04:12 (Saudi Time), Arabian Internet and Communications Services Company (solutions) announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue increased 9.048% YoY to SAR 6,243 million (from SAR 5,725 million), driven primarily by growth in Core ICT Services by 19.6% and IT Managed and Operational Services by 3.5%. Net profit attributable to shareholders rose modestly by 2.106% YoY to SAR 824 million (from SAR 807 million), supported by a SAR 101.3 million increase in gross profit resulting from SAR 517.2 million higher revenues, partially offset by SAR 415.9 million increase in cost of revenues. However, net profit growth was constrained by a SAR 12.9 million rise in operating expenses, a swing in other income/(expenses) from SAR 43 million income to SAR (16) million expense largely due to a non-recurring fair value gain in the prior period and lower finance income in the current period, and a SAR 9 million increase in zakat and tax charges.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 7.928% to SAR 3,240 million, driven primarily by a 23.2% increase in Core ICT Services. Net profit attributable to shareholders increased by SAR 83 million QoQ to SAR 453 million, supported by a SAR 202 million rise in gross profit (as revenues grew by SAR 238 million while cost of revenues increased by only SAR 36 million) and a SAR 12 million decrease in zakat and tax charge. These gains were partially offset by a SAR 94.6 million increase in operating expenses (mainly from a SAR 96.3 million rise in selling and distribution expenses) and a swing in other income/expenses to SAR (27) million from SAR 10 million in the prior quarter due to higher net other expenses.

Other Items

The external auditor issued an unmodified conclusion on the interim condensed consolidated financial results for the six months ended 30 June 2026, with no additional comments, reservations, or qualifications noted in the auditor's report. Total shareholders' equity (after deducting minority equity) stood at SAR 4,151 million, up 15.369% from SAR 3,598 million in the same period of the prior year. Profit per share for the current period was SAR 6.92, compared to SAR 6.78 in the same period of the prior year. EBITDA for the current quarter amounted to SAR 597 million compared to SAR 521 million for the comparable quarter of last year, representing an increase of 14.6%, while EBITDA for the six-month period amounted to SAR 1,089 million compared to SAR 969 million for the same period of last year, an increase of 12.4%. Basic EPS was calculated based on a weighted average number of 119,053 thousand ordinary traded shares for the six-month period ended 30 June 2026. No material risks, going concern uncertainties, debt covenant breaches, or accumulated losses were disclosed in the announcement.

Original announcement:

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