Al Arabia incurs SAR 108.5M loss in H1 2025; Q2 at SAR 156.7M

Arabian Contracting Services Co. (Al Arabia) reported a net loss of SAR 108.5 million in H1 2025, against a net profit of SAR 148.1 million a year earlier.

Losses are primarily attributed to the increase in costs resulting from the application of accounting standards for long-term agreements, specifically the one between Remat Al-Riyadh Co. and Al Arabia Alliance for Smart Advertisements Co.

The company also noted that the speed in the process of installing and preparing the advertising network, Elite collections and the digital zones related to contracts, such as Remat Al-Riyadh Co. contract with Al Arabia Alliance for Smart Advertisements Co., Riyadh Airports Co. contract, King Abdulaziz Public Transport Project in Riyadh (train and buses), Intercity Roads agreement, and the digital billboards network in Dubai, will lead to enhancing the capacity to accommodate a wide range of campaigns.

Moreover, adding new segments for elite advertisers will positively impact the revenues and net profit once completed, according to the company's projections.

On the other hand, revenue increased to SAR 974 million in the first half of 2025, up 20% from SAR 813 million a year ago.

The increase was primarily attributed to higher market share, with continuous digital transformation efforts increasing the capacity to accommodate a wide range of campaigns and advertisers. This demonstrates and confirms the efficiency of asset utilization and operations to achieve higher revenues.

This is despite the decline in demand for advertising, the incomplete advertising network, and the fact that the company has not yet started installing the elite collection and the digital zones related to several contracts.

In Q2 2025 the company turned to a net loss of SAR 156.68 million, versus a net profit of SAR 47.32 million a year ago.

Sequentially, the company flipped to losses from a profit of SAR 48.22 million in Q1 2025.

Shareholders’ equity, after minority interest, leapt to SAR 1.26 billion by the end of H1 2025, from SAR 1.25 billion in the prior-year period.

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