Arabian Internet And Communications Services Company · TADAWUL:7202
Arabian Internet And Communications Services — Q1 2025 Earnings Presentation
25 slides from Arabian Internet And Communications Services's earnings presentation, Apr 30, 2025
Slide 1: 1Q 2025 Results Presentation
1Q 2025 Results Presentation Riyadh, 30 April 2025
Slide 2: Agenda
Agenda 1Q 2025 Results Presentation 1 Key Milestones in 2025 YtD 2 Investment Thesis 3 Strategy Update 4 Financial Performance 5 Contact Details
Slide 3: Key Milestones in 2025 YtD
1Q 2025 Results Presentation 1 Key Milestones In 2025 YtD
Slide 4: Key Milestones in 2025 YtD
This message/document has been classified as “Public” Key Milestones in 2025 YtD solutions entered a number of high-potential partnerships and promising contracts, laying a solid foundation for growth 9 February 13 February 19 February 17 March upsource by solutions by stc signed a Giza Arabia solut
Slide 5: Investment Thesis
1Q 2025 Results Presentation 2 Investment Thesis
Slide 6: Investment Thesis Update
This message/document has been classified as “Public” Investment Thesis Update solutions offers an attractive mix of market leadership, growth potential and superb returns Market Leadership Sizeable and Superior Value Asset-Light Business Diversified Portfolio Creation Model • Undisputable market le
Slide 7: Strategy Update
1Q 2025 Results Presentation 3 Strategy Update
Slide 8: LEAP 2.0: a bold vision for a transformative era
This message/document has been classified as “Public” LEAP 2.0: a bold vision for a transformative era The new strategy aims at augmenting the core business by emerging tech, innovation and efficiency gains Growth Profitability + Drive growth through expansion and enhancements Sustain strong margins
Slide 9: Driving Forward: LEAP 2.0 Strategic Progress
This message/document has been classified as “Public” Driving Forward: LEAP 2.0 Strategic Progress Strategy to Showcasing tangible progress in developing and launching core strategic offerings Value Creation business resilience and strengthening market leadership. Strategic advancements on a pivotal
Slide 10: Digital Product Factory – Deliver Digital Products with Agility
This message/document has been classified as “Public” Digital Product Factory – Deliver Digital Products with Agility The Digital Factory is a disciplined way to deliver software products, established on agility, and automated development & secure deployment processes (DevSecOps); a joint value prop
Slide 11: Financial Performance
1Q 2025 Results Presentation 4 Financial Performance
Slide 12: solutions 1Q 2025 Financial Dashboard
solutions 1Q 2025 Financial Dashboard EBITDA and net margins improve, while slower growth reflects higher share of early-stage projects and seasonal trends 1Q 25 Revenue 1Q 25 GP Margin 1Q 25 Capex 1Q 25 Capex / Revenue SARmn 2,824 +1% YoY 21.8% -22bps YoY SARmn 58 +86% YoY 2.1% +95bps YoY 1Q 25 EBI
Slide 13: Revenue Trend and Breakdown by Business Segment
This message/document has been classified as “Public” Revenue Trend and Breakdown by Business Segment Group revenue grew +1% YoY in 1Q 2025 driven by IT Managed and Operational Services Management Commentary Revenue Trend (SARmn) ▪ Slower growth in 1Q 2025 was attributable to: (1) a +1% high share o
Slide 14: Revenue Breakdown by Entity
This message/document has been classified as “Public” Revenue Breakdown by Entity Giza and upsource accounted for 31% of 1Q 2025 revenue1 Management Commentary Revenue Breakdown by Entity (SARmn) ▪ upsource was the main revenue driver fueled by new +1% project wins and transfer of projects from solu
Slide 15: Revenue Breakdown by Customer Type
This message/document has been classified as “Public” Revenue Breakdown by Customer Type The revenue share of the private sector increased YoY to 26% in 1Q 2025 Revenue Breakdown by Customer Type (SARmn) Management Commentary +1% ▪ Revenue from stc grew 2% YoY in 1Q 2025, reflecting a higher share o
Slide 16: Profitability - Gross Profit Performance
This message/document has been classified as “Public” Profitability - Gross Profit Performance Gross profit margin recovered to 21.8% in 1Q 2025 from 19.8% in 4Q 2024 Management Commentary Gross Profit Trend (SARmn) ▪ Gross margin decreased by 22 bps YoY to 21.8% in 1Q -0% 2025 due to changes in the
Slide 17: Profitability - Gross Profit Drivers
This message/document has been classified as “Public” Profitability - Gross Profit Drivers 1Q 2025 Gross Profit performance was mainly affected by changing projects mix1 Gross Profit Breakdown by Entity (SARmn) Management Commentary ▪ solutions standalone gross margin dynamics QoQ -0.5% reflected re
Slide 18: Profitability - EBITDA and Net Profit
This message/document has been classified as “Public” Profitability - EBITDA and Net Profit Quarterly EBTIDA and net profit margins continued to grow EBITDA & Net Profit Trend (SARmn) Management Commentary 600 553 20.0 486 ▪ EBITDA grew 2% YoY in 1Q 2025 as a dip in gross margin 500 440 469 453 463
Slide 19: Balance Sheet - Working Capital
This message/document has been classified as “Public” Balance Sheet - Working Capital Working capital showed a temporary increase due to the invoicing and collection cycle seasonality in 1Q 2025 Accounts Receivable (SARbn) Accounts Payable (SARbn) Management Commentary 5 3.9 ▪ Receivable days declin
Slide 20: Cash Flow Generation
This message/document has been classified as “Public” Cash Flow Generation Operating cash flow was less negative than a year ago and was absorbed by net cash position that remained very strong Capital Expenditures (SARmn)* Management Commentary 300 255 ▪ OCF was negative at SAR 417 million in 1Q 202
Slide 21: Returns and Dividends
This message/document has been classified as “Public” Returns and Dividends High returns and progressively growing dividends Return Ratios* (%) Management Commentary 53.7% ROIC ▪ Capex-light business model generates high returns 53.2% ROAE and allows for generous dividends. 40.7% 42.6% ▪ The company
Slide 22: Guidance
This message/document has been classified as “Public” Guidance solutions maintains its 2025 guidance 1Q 2025 Results FY 2025 Guidance Revenue Growth 0.5% 8% - 10% EBITDA Margin 15.9% 14% - 16% Capex Intensity 2.1% 2% - 3% 22 / 21
Slide 23: Contact Details
1Q 2025 Results Presentation 4 Contact Details
Slide 24: IR Contact Details
IR Contact Details Contact solutions by stc investor relations team Abdullah Al-Dayel GM of Corporate Finance & Investor Relations +966 11 525 2985 aaldayel@solutions.com.sa Wafi Alfawzan, CFA Investor Relations Director +966 11 525 1174 walfawzan@solutions.com.sa Ghadah Alsuhaim Investor Relations
Slide 25: Shukran!
Shukran! ُ ًشكرا