The Arab Company for Internet and Communications Services (Solutions) has announced its preliminary financial results for the first quarter of 2026, achieving a remarkable 2.5% year-on-year increase in net profits. These results reflect the company's ability to enhance its profitability in the information technology sector, despite a seasonal decline in revenues compared to the previous quarter.
According to data published on the Saudi Stock Exchange (Tadawul), Solutions recorded a net profit attributable to its shareholders of 370 million Saudi Riyals (equivalent to 98.67 million USD) in the current quarter, compared to 361 million Saudi Riyals (approximately 96.27 million USD) in the same quarter of the previous year.
Financial Performance Overview
Earnings per share rose to 3.11 Saudi Riyals (0.83 USD) compared to 3.03 Saudi Riyals (0.81 USD) for the same period last year. Additionally, net profit showed a significant increase compared to the previous quarter (Q4 2025) by 32.6%.
The financial statements also revealed a revenue growth of 6.3%, reaching 3.002 billion Saudi Riyals (800.53 million USD), compared to 2.824 billion Saudi Riyals (753.07 million USD) in the same quarter of 2025. However, revenues experienced a decline of 23.2% compared to the previous quarter, where revenues amounted to 3.907 billion Saudi Riyals (1.04 million USD).
Background & Context
The reasons for the decline in revenues are attributed to seasonal factors and the nature of major technology project cycles, which typically conclude at the end of the year. Nevertheless, the company recorded strong growth in its operating profits by 7.5%, reaching 399 million Saudi Riyals (106.40 million USD), supported by effective cost management.
The total equity (after excluding non-controlling interests) reached 4.622 billion Saudi Riyals (1.23 million USD), reflecting the company's strong financial solvency and accumulated growth.
Impact & Consequences
These results are a positive indicator of the company's performance amid current economic challenges, as Solutions continues to strengthen its market position. The growth in operating profits reflects effective strategies in cost management and efficiency improvement.
These results coincide with the announcement from the Saudi Holding Group that reported a decline in net profits due to decreased trading volumes and rising costs, highlighting the challenges faced by companies in the financial market.
Regional Significance
These results are significant for the Arab region, as they reflect the ability of companies to adapt to economic changes. Moreover, Solutions' success in achieving profit growth may encourage other companies to adopt similar strategies to enhance their competitiveness.
In conclusion, Solutions' results stand as evidence of the strength of the technology sector in Saudi Arabia, bolstering investor hopes for a promising future for this sector.