SOLUTIONS profits rise 7% to SR273 mln in 2Q

Arabian Internet and Telecommunication Services Company (SOLUTIONS) announced that its profits after zakat and tax rose 6.6% to SR 273 million in the second quarter of 2022 compared to SR 256 million during the same period of 2021.

This came after SOLUTIONS announcement on Monday of the preliminary financial results for the period ending on 30.06.2022 (six months).

The company’s operational profits rose 8.4% to SR 294 million in the 2^nd quarter of the current year from SR 271 million in the same period of the previous year.

Gross Profits of SOLUTIONS surged 16.9% to SR 505 million in the second quarter of this year from SR 432 million a year ago, while the profit per share soared to SR 4.68 from SR 3.84.

The increase in net profit for the current quarter of 2022 by SR 17 million compared to the same quarter of the previous year was mainly due to the increase in gross profit by SR 73 million as a result of the increase in total revenue by SR 317 million which was offset by an increase in the cost of revenue by (SR 244 million).

Where the increase in revenues was mainly due to the increase in each of Core ICT Service by 20.8%, IT Managed and Operational Services by 21.8% and Digital Services by 0.1%.

On the other side, operating expenses increased by (SR 50 million), as a result of the Increase in general and administration expenses by (SR 30 million), and an increase in selling and distribution expenses by (SR 20 million).

In addition, other income increased by SR 4 million, and Zakat expense increased by (SR 10 million).

The decrease in net profit for the current quarter of 2022 by SR 10 million compared to the previous quarter was mainly due to the increase in operating expenses by (SR 31 million), as a result of the increase in general and administration expenses by (SR 22 million), and selling and distribution expenses by (SR 9 million).

On the other side, the gross profit increased by SR 12 million as a result of the decrease in the cost of revenue by SR 176 million.

Where the decrease in revenues was mainly due to the decrease in the Core ICT Service by 15.7%. On the other side, the IT Managed and Operational Services increased by 10.7% and the Digital Services increased by 2.1%.

In addition, other income increased by SR 3 million and Zakat expense decreased by SR 6 million.

The increase in net profit for 6 months period of 2022 by SR 95 million compared to the comparable period last year was mainly due to the increase in total revenue by SR 869 million, which was offset by an increase in the cost of revenue by (SR 692 million), which led to an increase in gross profit by SR 177 million.

Where the increase in revenues was mainly due to the increase in each of Core ICT Service by 32.7%, IT Managed and Operational Services by 17.7% and Digital Services by 4.5%.

On the other side, operating expenses increased by (SR 66 million) due to the increase in general and administration expenses by (SR 56 million) and selling and marketing expenses by (SR 10 million).

In addition, other income increased by SR 8 million, and Zakat expense increased by (SR 24 million).

Additional Information:

Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) for the current quarter of 2022 amounted to SR 350 million compared to SR 315 million for the corresponding quarter of last year, with an increase of 11%, and for the 6 months period of 2022 amounted to SR 718 million compared to SR 570 million for the corresponding period last year with an increase of 26%

Basic earnings per share (EPS) was calculated based on the weighted average number of ordinary traded shares which stands at 118,800,000 shares for the six-months period ended in 30th June 2022.