Arabian Internet and Communication Services (7202) Q4 2024 earnings summary

Executive summary

• Achieved 9% year-over-year revenue growth to SAR 12.06bn and 34% net income growth to SAR 1.60bn in FY 2024.

• Maintained market leadership with a 22.7% IT services market share in Saudi Arabia and expanded capabilities through strategic acquisitions and PPPs.

• Enhanced portfolio and widened client reach, including the first PPP with the public sector and a 40% stake acquisition in Devoteam Middle East.

Financial highlights

• Revenue grew 9% YoY to SAR 12,064mn; EBITDA increased 17% YoY to SAR 1,948mn; net profit rose 34% YoY to SAR 1,597mn.

• EBITDA margin reached 16.1% (+103bps YoY); net profit margin improved to 13.2% (+244bps YoY).

• Capex surged 128% YoY to SAR 255mn; free cash flow grew 3% YoY to SAR 1.19bn.

• ROIC reached 34.3% (+263bps YoY); ROAE at 43.4% (+482bps YoY).

Outlook and guidance

• FY 2025 revenue growth guidance set at 8–10%; EBITDA margin expected between 14–16%.

• Organic capex as a percentage of revenue guided at 2–3%.

• KSA IT market expected to grow at a 9.3% CAGR through 2028.