Arabian Internet and Communication Services (7202) Q2 2025 earnings summary

Executive summary

• Secured multiple long-term partnerships and contracts in 2Q 2025, including major deals with stc and National Water Company, and launched a joint venture with Nile MEA.

• Maintained market leadership with a 22.7% share and a strong project pipeline, signing over 95 contracts in 1H 2025.

• Revenue for the six months ended 30 June 2025 reached SAR 5,725 million, up 2.6% year-over-year, with net profit at SAR 807 million, nearly flat compared to SAR 807 million in the prior year.

• Gross profit for the six-month period was SAR 1,272 million, with an operating profit of SAR 817 million.

• Total comprehensive income for the six months was SAR 780 million, reflecting actuarial and currency translation losses.

Financial highlights

• Revenue grew 3% year-over-year to 5,725 million in 1H 2025, with EBITDA up 7% to 969 million and net profit flat at 807 million.

• Gross profit margin declined 135bps YoY to 22.2%, while EBITDA margin improved 64bps to 16.9%.

• Capex increased 57% YoY to 86 million, with net cash from operating activities at -782 million, reflecting seasonal trends.

• Cash and cash equivalents increased to SAR 1,629 million from SAR 1,127 million at year-end 2024.

• Net cash generated from investing activities was SAR 2,489 million, mainly from short-term murabaha deposits.

Outlook and guidance

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

• Management does not expect post-period contracts or negotiations to materially impact future results.