Arabian Internet and Communication Services (7202) Q1 2025 earnings summary

Executive summary

• Entered multiple high-potential partnerships and contracts in early 2025, including strategic deals with government and private sector entities.

• Launched new brand identity for upsource and expanded smart city and digital infrastructure projects.

• Report covers the three-month period ended 31 March 2025, reviewed by Deloitte with no material misstatements found.

• The group operates mainly in ICT services, with significant activities in Saudi Arabia and subsidiaries in Egypt.

• Revenue for the period was SAR 2,823.9 million, with net profit of SAR 359.1 million, both slightly higher year-over-year.

Financial highlights

• 1Q 2025 revenue grew 1% YoY to SAR 2,824mn, driven by IT Managed & Operational Services.

• EBITDA rose 2% YoY to SAR 448mn; net profit increased 2% YoY to SAR 361mn.

• Gross margin at 21.8% (down 22bps YoY), EBITDA margin at 15.9% (up 17bps YoY), and net profit margin at 12.8% (up 19bps YoY).

• Capex surged 86% YoY to SAR 58mn, reflecting investment in new projects.

• Total assets stood at SAR 11,692.5 million as of 31 March 2025.

Outlook and guidance

• Maintains FY 2025 guidance: revenue growth of 8–10%, EBITDA margin of 14–16%, and capex intensity of 2–3%.

• Board recommended total cash dividends of SAR 1,190 million, pending approval.

• Newly secured projects expected to contribute more revenue in coming quarters.